DEFIBULLUSD trade ideas
DEFI INDEX - THE CURRENT OVERLOOKED OPPORTUNITYHello Traders, nothing changed from the last updates for BTC and ETH.
While waiting for a movement I want to signal a nice opportunity I spotted on the crypto markets.
While the Total Value Locked on DeFi reached the new ATH, in a V-shape recovery from the recent drop, the DeFi PERP index is not following. This is a 35% misprice in my opinion, that has to be filled soon. RSI has plenty of room to grow.
Indicative and personal RR ratio on the chart.
DEFI Index Looking at FTX's DEFI index that tracks some of the large names in defi.
The recent price action has been interesting, forming a cup and handle-like pattern. In my opinion this still needs some time to simmer before it is ready to set a higher high and take off. The RSI is showing promise and the momentum indicator is hinting at crossing over BUT some of the underlying assets' charts do not look as enticing. I am not entirely sure how close these track, but would still like to see volume pick back up and the chart set a definite trend before making moves.
Similarly, DPI has been hinting at a rotation back into defi blue chips.
Regardless, if i had to guess this is all pointing to a defi summer-like boom to close out November into 2022.
DEFIPERP/ALTPERP : 90 day outlookMy expectation is that Defi is going to run hard for 2-3 more months until the EOY.
As you can see from the previous cycles, this one again seems to go parabolic, albeit long term as Defi hype dies down and gets replaced by the new flavour of the year, cycles will become longer and weaker until no longer relevant.
Don't marry your bags.
PS: This is not financial advice.
A small update of DeFi PerpIt seems that after a long fall from the dominance of Defi to Altcoins, we are starting to take a strong move to the north. The chart looks very promising and a strong upward structure has formed in the W1 chart, which is confirmed by the crossing on the MACD chart. The RSI was cooled down, hit the bottom and now it's going.
Everything looks very promising and if the trend continues, we will see significant increases in DEFI projects as in February March 2021
Previous:
Keep it simple and ride the DeFi wave ! Pretty bullishEthereum’s decentralized finance is ready to grow beyond its sandbox: with a dense network of financial primitives, it’s now easier than ever to harness DeFi for other ends, such as to replace a predatory relic of our past like the lottery, still insanely popular and detrimental.
With this story, I’d like to take a step back and adopt a macro perspective on Ethereum. So far, my interest mostly revolved around decentralized finance, as it drove the innovation over the last couple of years.
Yet, I believe we’re reaching the next step of the growth of the incredible human coordination experiment that is the Ethereum network: the lego blocks provided by DeFi are now mature enough to be harnessed for other ends.
Indeed, we’re now seeing how these streamlined value capture and exchange devices can be harnessed to facilitate the creation of engaged communities or sustain the commons. So this time, instead of what or how, let’s ask why? After a quick reminder on the key benefits delivered by DeFi legos, we’ll look at a few projects harnessing them to flip the table in their respective domains
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Many thanks to Brice , make sure to check his blog : tokenbrice.xyz
ATH is the first step of many .. Don't be fool by anyone !