Celer (CELR), Cartesi (CTSI) and Compound (COMP) rally as DeFi heats up
Bitcoin bulls are still trying to push the price to new highs, but one positive sign is that BTC has not corrected sharply in recent days and a top cryptocurrency has increased its market capitalization since the 26th trading day. Mars had over $1 trillion.
While many are wondering what will be next for bitcoin, a Bloomberg Intelligence report by senior commodities strategist Mike McGlone indicates that BTC will reach $80,000 in the second quarter instead of falling to the $40,000 level.
Daily review of cryptographic market data. Source : coin360
Bitcoin’s consolidation has not deterred altcoins, which have continued their upward march in recent weeks. Cointelegraph recently reported that the number of cryptocurrencies with a market capitalization of $1 billion has doubled in the past two months to the 100 mark.
Decentralized financial assets also rose sharply, with the total value of assets locked up in DeFi on December 6, according to DeFi Llama. April reached $100 billion. LST was valued at just $20.74 billion at the beginning of the year, indicating significant growth in this area.
Let’s focus on algorithms and analyze the fundamentals of three tokens that have performed well in recent days.
Celer Network’s CELR token was launched on the 16th. Mars was listed on Cointelegraph when it cost $0.059. Since then, the token has continued its upward trend and at 28. March reached a new high of $0.103, marking a new 74% rally in a short period of time.
The DeFi Room has been in the spotlight in recent months for its enticing returns. However, Ethereum’s rising network costs have limited these benefits for large players, and small investors with little capital have missed out on many investment opportunities.
To solve this problem, Celer announced on 18. February to introduce Layer2.finance, which should significantly reduce the cost of accessing the DeFi. The group stated that the project was in the final stages of research and would be launched soon. If Celer succeeds, it could solve one of the main problems that could limit DeFi’s growth.
CELR is in a correction since the price dropped on the 28th. March reached $0.103. The rally has reached the 20-day exponential moving average ($0.071), but the bulls are having a hard time defending that level.
Daily chartCELR/USDT. Source: TradingView
This suggests that bullish sentiment has weakened and traders are in no hurry to buy the dips. The direction of the 20-day EMA and relative strength index (RSI) below 54 indicates possible range action in the near future.
If buyers defend support at $0.065, the CELR/USDT pair could try to resume upward movement, but it will most likely face strong resistance at $0.087 and then at $0.095. However, if the bulls push price above $0.103, the pair could rally to $0.122 and then to $0.155.
If the bears drop below $0.065, the decline could continue to the next support at the 50-day simple moving average ($0.047). Such a deep correction usually delays the start of the next phase of the uptrend.
Cartesi (CTSI) aims to combine traditional tools used by the developer community with decentralized tools. This could attract some developers to decentralization, which is currently limited by the use of different blockchain programming languages. Moreover, the team believes that their technology can increase the computing power of certain applications by 10,000%.
In recent months, Cartesi has announced partnerships with Injective, Travala, IOTA, Polygon, Elrond and Avalanche. In the coming weeks and months, the cryptographic community will be watching Cartesi’s Layer 2 technology closely to see if it can improve computational performance and deploy computationally intensive applications without compromising security.
The CTSI has been in an uptrend for several weeks. It rose from an intraday low of $0.077 on February 8 to an intraday high of $0.896 on February 4. April, a gain of 1,063% in two months.
Daily chartCTSI/USDT. Source: TradingView
However, after rising sharply in recent days, the CTSI/USDT pair is now showing profit-taking. The bears have pulled price below the 38.2% Fibonacci retracement level at $0.583 and the next support is the 50% retracement level at $0.486.
If the pair bounces off the $0.486 level, this would be a bullish sign as it would show that the previous resistance of $0.466 has become a support. The bulls will then try to resume the uptrend, but will likely face a strong sell-off at $0.65.
If the price drops from this resistance, the pair could stay in this range for a few days. A breakout and close above $0.65 would be the first sign that the bulls are trying to bounce back. On the other hand, a break below $0.466 could signal a possible trend change.
The composite index (COMP) continues to strengthen despite setbacks in the financial services sector. On the 21st. In February, it reported protocol total deliveries of $10 billion. The country’s total amount has increased since the 3rd quarter. The month of April exceeded the $15 billion mark. The protocol remains at the top of the DeFi rankings with a total blockchain value of $9.53 billion.
On 1. In March, Compound announced the launch of Gateway, a substrate blockchain that the team believes will eventually become a pillar of the global interest rate market capable of supporting any asset.
On the 26th. In March, Compound Labs founder and CEO Robert Leshner tweeted that he had given a presentation on DeFi to Federal Reserve employees. This is an important first step, as it shows that the world’s largest central bank is interested in learning more about the FSC.
The 3rd. In April, the company received 629,000 ether ($1.3 billion) from an anonymous whale, and many suspect this is evidence of large institutions getting into DeFi.
COMP has risen from an intraday low of $330 on March 25 to an intraday high of $562.85 on March 4. April, a 70% recovery in a short period of time. Bears are aggressively defending the upper resistance zone of $558-573.
Daily chartCOMP/USDT. Source: TradingView
The COMP/USDT pair is stuck in a wide range between $320 and $558. The current pullback could find support at the 20-day EMA ($444), which has now formed. If the pair jumps off this level, the bulls will try to push the price back above the upper zone.
If the bulls succeed, the pair could enter the next phase of the uptrend, with $796 as its target.
Contrary to this assumption, if price falls below the moving averages, it could extend the decline and reach support at $320. A break below this critical support could increase selling and push the price towards $200.
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