DeFi Coin price continues to put in a solid performance over the past 24 hours, while all around the crypto bleeding continues.
Currently trading at $0365, that is in start contrast to the rest of the market.
Bitcoin is holding crucial support at $28.8k, while Ethereum, which at one point fell by 10% yesterday, trades well below the psychologically significant $2,000 mark at $1,756.
There are signs of some stability setting in for the weekend markets but the decoupling in a bad way from tech stocks is a worry – tech stocks rallied yesterday but crypto continued to fall.
DeFi Coin’s (DEFC) strength on display yesterday is carrying through into Saturday, with the price up 2.5% on a 24-hour measure.
Bulls will be particularly cheered by the appearance of a bull flag pattern on the 2-hour chart.
This price formation follows a period of strong price advance (the pole) followed by a period of consolidation (the flag), and is strikingly in evidence at this juncture.
Going back to the decoupling event that took place yesterday, it is likely that the furore surrounding stablecoins is having the extra dampening effect on crypto sentiment.
So big buyers of crypto in hedge funds and elsewhere may be preferring to hoover up some tech stocks as they approach tempting valuations, while they steer clear of crypto until a little more clarity is discernible.
Cryptoassets are a highly volatile unregulated investment product.
As it happens, the premise behind that outlook could be bullish for DeFi Coin.
The collapse of terra USD (UST) and Luna has soured the mood around algo stablecoins and by association the complex and often impenetrable financial engineering around some DeFi products.
DeFi Coin and DeFi Swap stand out as easy-to-understand value proposition, where the source of yield comes directly from the smart contract based transaction tax. With terraUSD deposit yields, the source was never clear.
Also, from the outset the DeFi Coin ethos has been a community-driven ecosystem, with no special insider interests – unlike Terra Luna and its opaque relationship with VCs, Chicago trading firms and fund investors.
According to the DeFi Coin roadmap, the DeFi Swap V3 protocol will be live in the next couple of months. The upgrade includes many more swap pairs, new tools that will include research, forum, crypto signals, interactive charts, market data, podcasts and more.
A revamp of the DeFi Coins website is also imminent.
Against this enviable backdrop then, the bull flag consolidation could see fuel build up for another push on to $0.40 and then the $0.47 level.
And if you are looking to do some more research on DEFC, read this story on 10 reasons to invest in DeFi Coin.
Also, check out our DeFi Coin price prediction analysis page for more intelligence on DEFC.
Another consideration that flows from the wider decoupling story is that the dysnchronisation with tech stocks could open up the possibility that another leg lower for tech could actually coincide with a turn in crypto sentiment towards a more favourable view.
The threat of a domino effect emanating from UST that, for example, undermines Tether should start to wane.
In that regard, the growing strength of the Circle and Coinbase-supported USDC stablecoin, which is backed by cash and near-cash equivalents and where its leading backer – Circle – is applying for a bank charter in the US, would be bullish for the complex.
USDC’s rise would see worries about Tether’s lack of an audit of its reserves become less important as its role becomes less pivotal as compared to USDC.
Such a development would be particularly helpful for the DeFi sector and, by inference, for DeFi Coin.
For now though Tether still rules, with a market cap of $73 billion compared to USDC’s $53 billion, but the gap is closing.
We believe that relative minnows today such as DeFi Coin could be future big players in a new more transaprent and, in some ways, simpler DeFi landscape, where a stablecoin is fully backed and so are the sources of earnings that feed yields, as is the case with deFi Coin.
Times of steep drawdowns in the market are when fortunes are made. But to control timing risk, dollar cost average in is the prudent approach for would-be new holders of DEFC.
Related Crypto News
DeFi Coin (DEFC) – Undervalued Project
This article was written for Business 2 Community by Gary McFarlane.
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Gary is the editor of business2community.com. He is also the former cryptocurrency analyst at interactive investor, the UK’s second-largest investment platform. He has been active in the digital asset space since 2013, when he initiated coverage of bitcoin at respected investment monthly magazine Money Observer.… View full profile ›
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