The total value locked in decentralised finance protocols hits $12. 7 billion as Aave, Uniswap, and yearn.finance prices soar
Decentralised finance tokens are seeing an uptick in their respective prices, with potential for further rallies if the bulls manage to hold onto gains above crucial support levels. Across the DeFi space, investors have now locked $12.7 billion in various projects, up from $10.99 billion on the 3rd of November.
At the time of writing, Aave (AAVE), Uniswap (UNI), and yearn.finance (YFI) are all trending higher on the day. YFI is nearly 20% up in the past 24 hours, while AAVE has surged more than 12% and UNI price is looking to cross $2.90 after surging 6%.
The technical outlook for these tokens suggests a bullish breakout is in the offing. However, that perspective will hold only if the buyers can absorb the expected downward pressure.
AAVE price has rallied more than 120% over the past seven days. The upside action includes a more than 12% move in the past 24 hours to see bulls target resistance near $59.
Bulls need to achieve a candlestick close above $58 on the daily chart to retain the upward advantage. However, the hourly chart suggests an inbound downward pressure, which could see AAVE/USD retrace. If that happens, the 50-SMA provides support near $52.5, with bulls seeking to limit the damage of a further drop by keeping prices above the 100-hourly simple moving average at around $45.
Uniswap price is up by more than 35% over the past seven days and is looking to break above $2.90 after an impressive run over the past 24 hours.
Bulls can flip the resistance line at the above price level to seek a rally to $3.3. However, the action is likely not to succeed given the stubborn challenge bears have set up at this price level as shown on the 4-hour chart.
As shown in the chart, the area is home to the 200-SMA at $2.83. The bulls have tested the area on multiple occasions over the past week, but have fallen short every time. Currently, the price is just above the hurdle but only a candlestick close above it on the daily time frame could confirm a bullish advantage. If the upward pressure wanes in the short term, UNI/USD could drop to the 100-SMA support level at $2.50.
YFI/USD is up 19.5% in the past 24 hours, with the token’s price printing higher-highs and higher-lows on the hourly chart.
After breaking above a descending trendline formation, YFI has appeared to strengthen its symmetrical triangle breakout. A look at the pattern suggests that the token’s price could surge to highs of $19,000.
In case of a reversal, the YFI price could decline to lows of $14,000 marked by support at the 100-SMA on the hourly chart. The 200-SMA provides a further cushion at $11,695 if the bears take charge.