For the fourth time in recent weeks, sellers bravely defended their honour in the range of $700-740. The previous daily candle closed at $685, leaving on the chart a false breakout of an important range.
The steady index price decline with the beginning of the new week suggests that at best, there is a consolidation in the range of $640-740 in the market.
Low volumes are the uptrend enemy
Last trading week was not marked by the trading activity. In the period from 30 November to 6 December, one of the lowest weekly volumes since the index creation was recorded. A decrease in volumes at local highs may indicate a loss of buyers’ interest to invest at current prices. Therefore, this consolidation has a good chance of breaking down.
The daily timeframe shows us buyers’ lower trend line breaking, which they have been confidently keeping since 5 November.
The DeFi composite index price fell out of the trend without much effort from sellers. It confirms the opinion about the lack of interest in investing at current prices. Continuation of the passive buyers’ behavior will lead to a retest of $550-575, where we should see a real fight. This potential fall could expand the price consolidation range to $550-740.
However, if buyers manage to keep the mark of $640 this week, the chance to break $740 will increase. Although, given the volumes and dynamics of trading at the time of writing – this is unlikely.
Weekly achievements of individual DeFi composite index components
If we analyze the Defi composite index tokens, then the best for the week were BEL and COMP. They have showed the growth by more than 20%. Though, having a total share of influence on the index of only 8.29%, these tokens could not significantly affect the local wave of the price fall.
The main number of Defi tokens affecting the index fell in the range of 4-6%. In addition to BEL and COMP, we can safely distinguish BAND, RSR and AAVE. These tokens showed excellent growth between 27 November and 3 December. And over the past week, buyers have confidently slowed down the price fall, proving their strength and ability to counterattack at a good time.
At the moment, the prospect of the current fall wave continuation is still there. In addition, BTC buyers passed on a range of $18,500-18,700 showing their weakness.
A new portion of the high trading volumes is needed to reverse the DeFi market price. And this is possible in case the BTC price stabilization and attractive purchase prices.