Tezos (XTZ), Synthetix (SNX) and Yearn.finance (YFI) Lead the DeFi Awakening


The strength of Bitcoin’s (BTC) uptrend appears to be growing as the top-ranked digital asset surged above $40,000 today. It’s probably safe to say that many investors were completely dumbfounded by the fact that BTC had doubled in value just a month after breaking the $20,000 mark.

This indicates that the buying continues, signaling strong demand at any higher level. This bullish sentiment has pulled several altcoins higher with the total crypto market cap expanding above $1 trillion.

Since most altcoins have just started participating in rallies, altcoins may rise vertically in the short term. The meltdown phase is one of the best opportunities for quick profits, but it is also risky as vertical rallies tend to turn quickly.

The tokens selected today are in the early stages of their rally and may have room to advance. Let’s look at the fundamental development and chart structure to determine the trend and possible upside targets.

XTZ/USD

Tezos (XTZ) has gradually taken steps in recent weeks to boost growth. The first is to reduce the cost of gas smart contracts with the Delphi upgrade in November. This is done to attract developers to build apps in the DeFi space, collectibles, and decentralized games.

In early December, StableTech launched Ethereum wrapped on the Tezos blockchain and this could attract greater participation from users as the recent sharp rise in gas costs on the Ethereum network complicates matters for traders and users of the DeFi sector.

Increasing its offerings further, Tezos announced the launch of its first NFT platform dubbed Kalamint which is expected to go live sometime this month. This will allow users to create and list NFTs on the market at XTZ prices.

Recently, Nisbah Capital, a blockchain subsidiary of the Saudi Arabia-based Taibah Valley, collaborated with the Tezos ecosystem as a corporate banker. This could ultimately increase institutional adoption in the Middle East and North Africa region. While recent developments do look positive, it is important to determine whether the market is equally interested in these developments.

XTZ rose from $1.9505 on Jan. 3 to an intraday high of $2.80 today, rallying 43.55% in five days. This upside move has pushed the price to the top of the $1.80 to $2.85 range where the token has been stuck for the past few months.

Usually, if the base pattern breaks upwards, it indicates accumulation by the bulls. The longer the time spent in consolidation, the more likely the rally will be stronger.

The 20-day exponential moving average ($2.21) has started to gradually rise and the relative strength index (RSI) is in positive territory, suggesting that the bulls have little gain.

If buyers can push the price above $2.85 and hold the level for a day, it will suggest the start of a new uptrend, which has a target target of $3.90. If these levels scale, the XTZ/USD pair could retest an all-time high of $4.4936.

However, the pair has resisted today’s overhead resistance, suggesting selling by the bears near $2.85. If the price breaks below $2.40, it can make pair range-bound in the range for a few more days.

SNX/USD

Coinbase’s listing on December 16 sparked a rally in Synthetix (SNX) and the decentralized financial derivatives protocol has built on its strength by extending gains in recent days.

The protocol completed a major upgrade dubbed Shaula on December 24, which adds Bitcoin as a form of collateral, increasing the potential to increase Synth supply. Another feature in this upgrade allows users to deposit sUSD as collateral and short synthetic assets.

During the bull phase, professional traders outperform the market by executing entries and exits on time. While it is difficult for novice traders to do the same, Synthetix offers users the opportunity to trade with experienced portfolio managers on the dHEDGE pool. This may have attracted some traders to join the community.

These new features and the strong bullish macro trend in the crypto market as a whole could be the reason why the total value locked in SNX is approaching the $2 billion mark.

SNX jumped from an intraday low of $7,154 on January 1 to an intraday high of $13.38 on January 5, rallying 87% in five days. The token is currently consolidating in a strong uptrend, which is a sign of strength.

Bears currently trying to stop the uptrend at $13.38 as seen from the long wick of the last three day candle. However, the bulls haven’t given up much and have bought the downside, indicating demand is at a lower level.

If the SNX/USD pair does not break below the 38.2% Fibonacci retracement level of $11.002, it will suggest aggressive buying by the bulls. If the buyers can push the price above $13.38, the next uptrend could start which could reach $16 and then $19.30.

However, the rally of the last few days has pushed the RSI deep into overbought territory, which could result in consolidation for a few more days before the start of the next trend move.

A break and close below $11.002 could signal a possible deeper correction to the 20-day EMA ($8.80).

YFI/USD

Over the past few months, Yearn Finance (YFI) has collaborated with several well-known DeFi projects and now the team is offering high-yield investments that charge low costs and reduce customer capital risk. While partnership announcements generate enthusiastic short-term responses from traders, they usually fail because new product launches take time.

One of the uncertainties that can plague the community is progress on the second iteration. This issue was recently addressed by the developers at Yearn who released an update on the development status.

Yearn Finance founder Andre Cronje released details of a new protocol called “tokenized yield credit”. However, right after the launch, the developer warned about an exploit on the protocol. Such delays and warnings can make investors averse to risk and this partly explains why YFI prices have been relatively stagnant for some time.

However, on January 7th Binance announced that they would be rolling out staking for YFI and this move could be the reason for the sharp spike in the price of the DeFi token.

YFI rallied from an intraday low of $20,381.88 on Jan. 3 to an intraday high of $37,185 today, an 82% rally in five days. With today’s sharp upward movement, the token has broken through neckline from pattern head and shoulders pattern.

This bullish setup has a target target of $55,000 but is unlikely to go straight up. The long wick on today’s candle indicates aggressive selling above $34,204.24.

The bears can now try to pull the YFI/USD pair to the neckline of the pattern. If the price rebounds from this level, the bulls will once again try to continue the uptrend.

If the pair rises above $37,500, the uptrend could retest its all-time high of $43,966.31. If the bulls can push the price above this resistance, the momentum could increase and it could take the pair to $50,000 and then to $55,000.

This bullish view will be overturned if the downside sinks and keeps the price below the neckline line. Such a move could invalidate the bullish pattern and pull the price towards the 20-day EMA ($24,424). The trend could be in favor of the bears if the $18,000 support breaks.

source: https://cointelegraph.com/news/tezos-xtz-synthetix-snx-and-yearn-finance-yfi-lead-the-defi-revival

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