The CBOE has filed an application with the United States Securities and Exchange Commission to list the Bitcoin (BTC) exchange-traded fund proposed by asset manager Van Eck. If the Bitcoin ETF receives a green signal from the regulators, it could boost market sentiment and attract several new investors to the crypto space.
A strong bull run usually results in pockets of excesses. During the 2017 crypto bull run, the initial coin offerings had witnessed a bubble. Litecoin (LTC) creator Charlie Lee believes that the current nonfungible token mania has many similarities with the ICO boom. Lee is not alone, several others in the crypto industry have also warned investors about the NFT mania.
Two tokens chosen today belong to the decentralized finance space and one to NFTs. Let’s look at their fundamentals and the charts to spot the critical levels on the upside and the downside.
UNFI/USD
High network fees are a big deterrent in the DeFi space. Therefore, any protocol that offers an opportunity to reduce network fees along with other features is bound to garner attention.
Unifi (UNFI) farms recently went live on all the six Unifi Protocol Blockchains. The unique feature of Unifi farms is that it is supposedly the first to offer a no-stake farming platform in DeFi. It charges less network fees and offers greater security as the liquidity tokens stay in the wallet of the users.
Unifi launched the first stablecoin pairing on Binance Smart Chain and plans to introduce these features to other Unifi blockchains in the future. Unifi also partnered with IoTeX blockchain that will provide cross-chain DeFi opportunities Unifi and IoTeX users.
Investors seem to have taken a liking to the project and the team announced that the community had staked the maximum capacity of 500,000 UNFI tokens and earned about 40% APR on their staking. As a reward for their overwhelming support, Unifi raised the max staking APR to about 45% for a 48-hour period in late February.
UNFI price has surged from an intraday low at $16.50 on Feb. 23 to an intraday high at $44.39 on March 1, a 169% rally within a week. After the sharp rally of the past few days, traders seem to be booking profits at higher levels today.
The first support on the downside is $32.50. If the bulls can flip this previous resistance to support, it will signal strength and increase the possibility of a resumption of the uptrend. If the bulls can propel the price above $44.39, a rally to $50 may be on the cards.
Both moving averages are sloping up, which is a positive sign. However, the negative divergence on the relative strength index (RSI) signals that momentum is weakening.
If the bears sink the price below $32.50, the UNFI/USD pair could drop to the 20-day exponential moving average at $28.35.
A strong bounce off the 20-day EMA will suggest the bull trend remains intact, but a break below it will indicate the likelihood of a deeper correction. The critical support to watch on the downside is $20.
FIS/USD
The DeFi space continues to attract new players who try to add unique features to capture investor attention. StaFi (FIS) aims to provide users an opportunity to unlock the liquidity of the staked assets. Investors who stake PoS tokens through StaFi are awarded rtokens that are synthetic derivatives of the staked assets. These rtokens can then be traded or used as collateral in other DeFi protocols.
StaFi launched the rETH product in early February with several incentives such as StakingDrop rewards for early stakers. The protocol also projected the APR for ETH staking to be about 11%.
To expand its services, the protocol launched the rDOT test version by end February. The protocol plans to update the user interface and launch the product in March. This will be followed by rATOM and rKSM by April.
StaFi has tied up with several DeFi platforms such as EasyFi and Stone where users can lend, provide liquidity, and stake their rtokens.
FIS rallied from an intraday low at $1.5001 on Feb. 24 to an intraday high at $3.59 today, rising 139% in about seven days. The bulls had pushed the price to a new all-time high today, but the long wick on the day’s candlestick shows profit-booking at higher levels.
The upsloping moving averages and the RSI near the overbought territory suggest that bulls are in control.
If the bulls do not give up much ground from the current levels, the FIS/USD pair will once again try to resume the uptrend. If the price sustains above $3.59, the rally could extend to $4.072 and then $4.2425.
On the contrary, if the bulls can pull the price below $3, the pair could correct to the 20-day EMA ($2.53). If the price rebounds off this support, the bulls will once again try to resume the uptrend.
But if the bears sink the price below the 20-day EMA, the pair may drop to the 50-day simple moving average ($1.75). Such a deep fall could delay the start of the next leg of the up-move.
DEGO/USD
DeFi and NFTs are the two sectors in the crypto space that have shown increasing strength in the past few months. Dego finance aims to offer a one-stop NFT system, build DeFi apps and games and offer cross-chain functionality.
Dego wants to break the notion that NFTs are only good as a collector’s item. The protocol plans to give utility to the NFTs by enabling their mining, auction, and trading.
To do that, the protocol has announced several partnerships in the past few days. Dego and Phala Network have agreed to cooperate in the NFT field by sharing products and resources. Phala will also provide privacy infrastructure support to Dego. In another partnership deal, Dego and MATH have teamed up to start the first NFT mining campaign.
Initially, the project was built on the Ethereum network but later shifted to the Binance Smart Chain and in the future, the team plans to launch on the Polkadot ecosystem.
DEGO has been in a strong uptrend for the past few days. It has rallied from $3 on Feb. 23 to an intraday high at $6.58 today, a 119% rally in eight days.
The DEGO/USD pair remains in a strong uptrend and that has pushed the RSI above 85, which suggests the rally may be overheated in the short term.
If the price turns down from the current level, the pair could drop to $5. If the bulls can flip this level to support, the pair may attempt to resume the uptrend and rally to $8.
On the other hand, if the price breaks below $4.50, it could trap several aggressive bulls and that may pull the price to the 20-day EMA ($3.72).
A rebound off this support will be a hint that bulls are continuing to buy on dips. The buyers will then try to drive the price above the $5 overhead resistance.
Contrary to this assumption, if the bears can sink the price below the 20-day EMA, it could signal a possible change in trend.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.