According to a new report from CoinShares, Bitcoin (BTC) generated 97% of all crypto inflows in 2021.
The recent correction in Bitcoin price doesn’t seem to have deterred crypto investors, as CoinShares data shows a record $ 1.3 billion inflow of crypto products over the past week. This suggests that investors are more likely to accumulate in the downturns than trying to track higher prices.
Day view of crypto market data. Source: Coin360
Another area that has made great strides in recent months has been the decentralized financial sector. While bond yields are close to zero worldwide, the attractive return opportunities for DeFi and Flash loans have drawn investors, bringing the total to $ 26.1 billion on Jan. 25.
Unless the markets panic, there are always certain areas that are in a bull phase. The tokens selected today also outperformed the broader market in the short term.
Let’s examine some of the fundamental reasons behind their bullish moves and identify the critical levels to watch out for.
CELO / USD
Seamless cross-border money transfer with no high fees is a necessity in today’s world and Celo (CELO) aims to simplify that process. The project is starting to be adopted as there is now cUSD worth $ 30 million in circulation.
Following the success of cUSD, the platform plans to launch a new stable coin pegged to the euro over the next two months. Similar to its cUSD, the Euro Stablecoin will use a basket of crypto assets to keep the price closely tied to the underlying asset.
Celo’s partnership with KardiaChain, Kadena and Paychant opens up several new opportunities for its users. The community also cheered Cello’s listing on the Binance exchange on Jan. 5, and the altcoin broke sharply after the listing.
Celo recently announced a rewards program. From January 25th, users who meet a certain average monthly minimum credit of cUSD will receive rewards in CELO, depending on availability.
In addition to the products, the credibility of the project is also important for its success. In that regard, Celo’s inclusion on the World Economic Forum’s Global Future Council on Cryptocurrencies may have had a positive impact.
The CELO price rose from $ 1.752 on Jan. 12 to an intraday high of $ 3.922 on Jan. 22, a gain of 123% in ten days. The token currently forms a rounded basic pattern that will complete on a breakout and close above $ 4.50.
CELO / USDT daily chart. Source: TradingView
The CELO / USD pair has started a new uptrend, making a series of higher highs and higher lows. This suggests bullish sentiment and traders are buying on dips. The moving averages are falling and the relative strength index (RSI) is in the overbought zone, indicating an advantage for the bulls.
The pair doesn’t face major resistance until it hits $ 4.30, but the bears are unlikely to give up easily. They will try to stop the current uptrend in the US $ 3.60-3.922 zone. If successful, the pair could drop to the 20-day exponential moving average ($ 2.528) which buyers are likely to step in.
A strong rebound from the 20-day EMA will keep the uptrend intact and the bulls will then try again to push the price down to $ 4.30. A breakout and close above the USD 4.30-4.50 resistance zone could start the next leg of the uptrend.
This bullish view will be invalidated if the pair breaks below the 20-day EMA. If so, the pair could fall to the 50-day simple moving average ($ 1.95).
XVS / USD
The DeFi space remains strong even as major cryptocurrencies see a sharp correction. This demonstrates the users ‘trust in DeFi and the ability of the Sectors’ projects to generate much better returns compared to Altcoins.
The Venus Protocol (XVS) deals solely with Binance Smart Chain, so it did not suffer from the adverse impact of high gas charges that negatively impacted DeFi projects in early January. This could have made some traders jump to Venus.
Decentralization is one of the key factors for crypto, and Venus completed the transition on January 15th. The log is now managed by the community, which is a welcome step in the right direction. The positive results of the past few days may have pushed the total value to $ 400 million.
XVS has risen from an intraday low of $ 3.945 on Jan. 18 to an intraday high of $ 12.90 today, a rally of 227% in a short period of time. The momentum picked up after the bulls pushed the price above the stiff resistance zone of $ 5-6 on Jan 23.
XVS / USDT daily chart. Source: TradingView
There was some profit posting on Jan. 25, but the bulls bought the dip and pushed the price above $ 9.89 today to resume the uptrend. The double digit crossover appears to have ignited the bulls who continued to buy at higher levels.
The XVS / USD pair could rise to $ 15 now and then to $ 20. However, the recent rally has pushed the RSI deep into overbought territory, increasing the risk of a correction or consolidation.
If the price deviates from current levels, it will likely find support at $ 10. A strong rebound from this level suggests that previous resistance has turned in support and the bulls will then attempt to resume the uptrend. On the contrary, if the price drops below $ 10, the correction could deepen to $ 8.
FTM / USD
FantomFinance (FTM) is another DeFi project that acts as a ray of hope and leads the market higher.
Fantom recently partnered with Injective Protocol that is expected to increase adoption as users can access assets in both chains. Together, both teams plan to bring new and innovative synthetic products onto the market in order to take advantage of the steadily growing popularity of trading in plastics and decentralized derivatives.
This offers traders the opportunity to take advantage of trending markets that are trending rather than sticking to a particular asset class. FTM’s recent listing on SushiSwap also seems to have been welcomed by the community.
FTM has risen from an intraday low of $ 0.0241 on Jan. 22 to an intraday high of $ 0.0678 today, a rally of 181% in five days. The bulls had pushed the price above the $ 0.05665 resistance on January 24th and 25th but were unable to sustain the higher levels.
FTM / USDT daily chart. Source: TradingView
The bears tried to start a correction on Jan 25, but the bulls were in no mood to let up. They aggressively pushed the price to a new all-time high today. However, the sharp rally of the past few days has pushed the RSI deep into overbought territory, which could lead to a correction or consolidation.
If price is deviating from current levels but recovering from the $ 0.05665 support, it suggests that the previous resistance has moved to support. The FTM / USD pair could then begin the next leg of the uptrend which could hit $ 0.0850.
Conversely, if the bears cut the price below $ 0.05665, the pair could drop to $ 0.05 and then to $ 0.045. A break below this support could signal a turnaround.
The views and opinions expressed are those of the author only and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.