The trading week on the DeFi composite index market was held under the flags of buyers. The sharp price fall on 25 November did not change the bullish mood in the market. It took buyers two days to show their strength and desire to push the price up.
During this time, a high volume was noticed, which buyers were able to absorb with the help of limit orders. Thus, the range of $550-570 has stood and proved its importance in the medium-term price movements forecast.
As we can see in the chart, the unsuccessful sellers’ attempt to update the local low on 27 November provoked buyers to counterattack. We wrote about this scenario in our previous article. However, this price increase of the Defi composite index is very similar to the previous one, the culmination of which provoked a powerful sale.
In addition, current trading volumes are twice lower than during the previous wave of growth. There is a convincing impression that buyers put a lot of effort into maintaining the trend. Now the index price is in the liquidity zone of $700-730, which is quite important for sellers.
By holding it, sellers will claim to change the medium-term trend. If buyers lose control of $660 it will be the first signal of losing their initiative. This fact will be a catalyst for continued pressure from sellers on the price with the first target of $610.
Continuation of the growth trend and the index price fixing above $730 will open the way to the range of $850-890.
Replenishment in the DeFi composite index
This week, ALPHA and BEL joined the DeFi Composite index tokens family with an impact weight of 1.82% and 1.36%, respectively.
The most promising tokens this week were AAVE, CRV, BEL and RUNE, raising the price from 30% to 40%. The price of the most influential participant of the index -LINK rose by only 10% during the week.
YFII and UNI also lost their previous activity, giving the title of the most volatile tokens in the index. Although, considering UNI there was one unpleasant moment for short-term investors that shows the dark side of volatility:
In a few minutes, the price at increased volumes on the Binance exchange fell by more than 10%.
Given the sharp BTC price fall on 1 December, the probability of a global correction cannot be ruled out. Having fixed below $18,500, Bitcoin sellers will put at risk the entire crypto market correction. Let’s see if something can oppose Defi space to such a scenario and keep its main liquidity zones.