Decoding DeFi MetricsIn Decentralized Finance (DeFi), deciphering the wealth of new projects can be akin to navigating uncharted waters. However, amidst the chaos, fundamental analysis stands as a beacon, guiding investors and traders towards discerning the true value of DeFi assets.
1. Total Value Locked (TVL):
TVL, the sum of funds nestled within a DeFi protocol, provides a vital glimpse into market interest. Whether measured in ETH or USD, it illuminates a protocol's market saturation and investor confidence.
2. Price-to-Sales Ratio (P/S Ratio):
In DeFi, just like traditional businesses, evaluating a protocol's value against its revenue stream offers a unique perspective. A lower P/S ratio suggests undervaluation, indicating a potential investment opportunity.
3. Token Supply on Exchanges:
Monitoring tokens on centralized exchanges unveils market dynamics. While a surplus may hint at sell-offs, complexities arise due to collateralized holdings, necessitating nuanced analysis.
4. Token Balance Changes on Exchanges:
Sudden shifts in token balances on exchanges signal imminent volatility. Large withdrawals hint at strategic accumulation, underscoring the importance of tracking market movements.
5. Unique Address Count:
More addresses usually imply widespread adoption. But beware! This metric can be deceptive. Cross-reference with other data for a clearer picture.
6. Non-Speculative Usage:
A token's utility is paramount. Assess its purpose beyond speculation. Transactions occurring outside exchanges signify genuine use, a testament to its value.
7. Inflation Rate:
While scarcity is a virtue, a token's inflation rate demands attention. Striking a balance between supply growth and value preservation is crucial, emphasizing the need for a holistic evaluation approach.
In the intricate DeFi landscape, these metrics serve as the foundations of strategic decision-making. Each data point unravels a layer of complexity, empowering investors to make astute choices. As you delve into the world of decentralized finance, armed with these insights thrive in the boundless universe of DeFi possibilities! 🚀💡
Defianalysis
COTI possible Cup and handle.. Folks,
As I love coti and it's project we have to bear a little patience..
Cup is almost formed and let's hope for a bull flag down to support and than pump it up with the handle move..
Always be aware of this being my opinion and view on the charts..
But hé I freaking love it..
Always do your own research..
Feel free to comment, share/like and follow..
Also check out my other chartings..
🔥DeFi Opportunity - STRONG Entering MAJOR Buy Zones🔥The StrongBlock protocol offers “Nodes as a Service” (NaaS) which allows you to create a full Ethereum and Polygon nodes in a few seconds with no technical expertise. You then get rewarded 0.9 STRONG per day.
WHO & WHAT IS STRONGBLOCK?
StrongBlock was the originator of NaaS projects and its main co-founder is David Moss who was the VP and Head of Development for Block.one the creators of the EOS blockchain (currently #57 on CoinMarketCap) before launching StrongBlock.
The problems that StrongBlock solve are that nodes are an important part of decentralization yet almost all blockchains currently have too few nodes to be anywhere near decentralized and these lack of nodes also become a weakness in the strength of their blockchain.
PATIENCE
Patience has been the key for potential success in STRONG. StrongBlock has a fully doxxed team, a clear and strong roadmap and most importantly, they solve real world cryptocurrency problems. For these reasons, StrongBlock has the potential to become a major in crypto. You simply had to wait for the right time to enter to start earning your daily rewards, benefit from price appreciation of STRONG which will greatly reduce the time to recoup your initial investment and be able to purchase more nodes because the investment cost has decreased.
BUY ZONES 🧨🧨🧨
After an extended period of price decline, STRONG has entered major buy zones. Currently STRONG is in Buy Zone 1 🔥 which is based on historical support & resistance ranges. This range is a good place to start DCA'ing (Dollar Cost Average) into STRONG.
STRONG has the potential to go down into Buy Zone 2 🔥 which is a great zone for you to continue to DCA into STRONG. Zone 2 is where it will encounter some historical strong price volume activity which may become a floor to the price.
If STRONG falls through this zone into Buy Zone 3 🔥 , then this is definitely a great zone to continue to purchase STRONG as it is in the $0-$50 range which is a new territory for the price but the fundamental strengths of the project remain, therefore a great buy zone to accumulate STRONG.
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AAVE 4H - Upside PotentialHello friends, today I am reviewing the 4H chart for AAVE, a crypto altcoin on a linear scale.
In the chart I noted:
1) The price has been in a descending channel since November 9, 2021.
2) The price hit the bottom long term trendline multiple times on November 18, 2021.
3) The price target for the breakout is around $304, which is a 10% upside. This is also a resistance area.
4) If the price can breakout of the resistance area, it could go as high as $347 or about 25% upside.
5) The Ichimoku Cloud is holding the price down so we may not immediately touch the top of the trendline.
6) The RSI (relative strength index) just broke out of a multi-day trend out of the oversold area.
7) The volume seems very low.
What are your opinions on this?
If you enjoy my ideas, feel free to like it and drop in a comment. I love reading your comments below.
Disclosure: This is just my opinion and not any type of financial advice. I enjoy charting and discussing technical analysis . Don't trade based on my advice. Do your own research! #cryptopickk
9 Month Accumulation Ends in a WeekThe highest volume happened at around the $3.2 mark. We could go there again before the fib time zones show us a big move is imminent in the next week. Trend based Fib from the first mega candle from $5 to $30 to the lows at $0.30 shows that the golden pocket is around the start of the double digits.
Get ready, 9 month accumulations on a coin that has a higher TVL than Uniswap now but is still 20x from the same Market Cap/TVL Ratio as Uniswap will most likely have a crazy violent breakout. Viewer Discretion is Advised, the following material is for Mature audiences Only
Avax Update BUY triggered by script 13EMA crossing up 50SMAUpdate on Avalanche (Avax) BUY triggered by script 13EMA crossing up 50SMA
Avalanche (Avax) BUY triggered by script 13EMA crossing up 50SMA, 90% gain from current price level back to ATH price level! Bulls back in the market!
Avalanche (Avax) Buy Opportunity 90%+ Gain Triple Bottom Formed, Stochastics on the Weekly still showing a buyers market with a strong bullish sentiment short-midterm. Avax's price soared to a new ATH on 10/02/21 @ $59.7 and has since retraced from this huge explosive parabolic move forming a triple bottom. The stochastics on the Daily chart and 4H both show an extremely oversold market, further the triple bottom signifies that the Bulls are coming into play and this could be the sign of recovery back to the ATH levels previously set on 10/02/21. Currently the price level has tested and broken just above the 200 SMA signalling bullish sentiment but a possible test back to the 200 SMA and a break below this level would signal a strong signs of a some retracement or consolidation short-term. A trigger of the 13 EMA crossing up 50 SMA would be another confirmation of this move back towards to upside, gaining 90%+ on its way back to ATH levels and a possible push further to the 127.20% Fibonacci level and a new ATH @ $70.
Use the buy zones area to map out Buys from zone 1 below the 23.30 Fib level and zone 2 between the 23.20% & 38.20% Fibonacci level. Happy trading :)
Key Notes on this project:
Avalanche is an open-source platform for decentralized finance (DeFi) applications and enterprise solutions. Developed and launched in late September by Ava Labs, the team raised a total of $60 million across three separate sales. The Block has identified 54 projects and companies across 11 different verticals currently expanding on its ecosystem.
Capped Supply
An important characteristic of a store of value is scarcity. Unlike most other staking platforms which have an unlimited supply and continuously increase their supply at a compounded rate, Avalanche has a fixed capped supply of 720 million, creating scarcity. 360 Million tokens were minted at launch (with the vast majority locked up in vesting periods between 1 and 10 years) whilst the other 360 million are used for rewards for staking. As with Bitcoin, reward rates will decrease over time as it gets closer to the capped supply (although at a much smoother rate rather than infrequent halvings).
Avalanche (Avax) BUY triggered by script 13EMA crossing up 50SMA*Update* Avalanche (Avax) BUY triggered by script 13EMA crossing up 50SMA
Avalanche (Avax) BUY triggered by script 13EMA crossing up 50SMA, 170% gain from current price level! Bulls back in the market!
Avalanche (Avax) Buy Opportunity 170%+ Gain Triple Bottom Formed. Avax's price soared to a new ATH on 10/02/21 @ $59.7 and has since retraced from this huge explosive parabolic move forming a triple bottom. The stochastics on the Daily chart and 4H both show an extremely oversold market, further the triple bottom signifies that the Bulls are coming into play and this could be the sign of recovery back to the ATH levels previously set on 10/02/21. Currently the price level has tested and broken just below the 200 SMA signalling bearish sentiment but a possible test back to the 200 SMA and a break of this level would signal a very bullish sentiment, further a trigger of the 13 EMA crossing up 50 SMA would be another confirmation of this move back towards to upside, gaining 170%+ on its way back to ATH levels and a possible push further to the 127.20% Fibonacci level and a new ATH @ $70.
Use the buy zones area to map out Buys from zone 1 below the 23.30 Fib level and zone 2 between the 23.20% & 38.20% Fibonacci level. Happy trading :)
Key Notes on this project:
Avalanche is an open-source platform for decentralized finance (DeFi) applications and enterprise solutions. Developed and launched in late September by Ava Labs, the team raised a total of $60 million across three separate sales. The Block has identified 54 projects and companies across 11 different verticals currently expanding on its ecosystem.
DEFI BULLISH MOVEMENT !!Hello Traders
As you can see in the chart above, it seems that price has broken the trendline more or less. Tho I suggest multiple entries on this one.
On the other hand, RSI is showing a bullish divergence and a middle support zone.
So I expect the price to rally and reach the selected area. Watch out for weekly and monthly Resistances tho.
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What is your opinion? Comment below.
If you like the idea, please hit the like button and follow me so that you won't miss the updates. The information given is never financial advice. Always do your research too.
Goodluck.
MANTRA HIDDEN DEFI GEM 900%The project :
A lot of DEFI project went out on a wrong timing during summer, a lot of them don't have taste the bull run. On the DEFI jungle some deserve a special attention.
Mantra Dao a decentralised plateform that permit to lend coins with less collateral than snx, based on a scoring like a bank ; the collaleral will be variable (and that the actual problem of crypto lending plateform , the huge collateral),
On top of that, everyone will be able to put his coins lending , a kind of p2p lending cross chain by the polkadot chain. This plateform also permit stacking and much more...
In the future , decentralised finance coins with a real meaning for everyone will be the only ones who going to explode; imagine that from a mobile application, you can make a loan without having full collateral to provide or become a lender.
The news :
the 18/12 mantra dao launched the v2 of their coins that suppress fees from stacking.
By end of year the lending and the app are going to be launch.
In q1 2021 they're going to lauch there stable coin.
The graphic:
mantra is on an accumulation zone since the end of the DEFI hype.
Compare to POLS it did the same start , the same cup formation.
Remember those DEFI coin don't have ATH.
Potential EMA 20 and 50 crossing soon on daily timelaps; the first time since mantra came out
Stoch RSI is undersold