DeFi Index Falls as SUSHI and UNI Break Down

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In Brief
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The DeFi Index (DEFIPERP) is breaking down from a long-term ascending support line. Uniswap (UNI) has broken down below the $17.50 horizontal area. SushiSwap (SUSHI) has broken down from the $8.10 area and is trading inside a descending wedge.

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SUSHI

SUSHI has been decreasing since reaching an all-time high on March 13. It created a lower high on May 18 and has been falling at an accelerated rate since. 

On June 19, it broke down from the $8.10 area and validated it as resistance two days later. It is now approaching the next support level at $5.60. 

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Technical indicators are bearish. The MACD, RSI & Stochastic oscillator are falling. The MACD is negative, the RSI is below 50 and the Stochastic oscillator has made a bearish cross.

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The shorter-term six-hour chart shows a descending wedge that has been in place since June 3. Currently, the token is trading right at the support line of the wedge, which is considered a bullish pattern. 

In addition to this, the MACD & RSI have generated bullish divergence. 

If a breakout occurs, the $10.06-$10.9 area could act as the top. However, the longer-term trend would likely still remain bearish.

Chart By TradingView

Highlights

  • There is resistance at $8.10 and support at $5.60.
  • SUSHI is trading inside a short-term descending wedge.

UNI

UNI has been decreasing since May 3, when it reached an all-time high price of $45. The decrease continued until a low of $13 was reached on May 23. The ensuing bounce validated the $17.50 area as support. 

However, the upward movement was short-lived, and the token has fallen back below the $17.50 area since. It is currently decreasing towards the next support level at $9.75.  

Technical indicators in the daily time-frame are bearish. The Stochastic oscillator has made a bearish cross, the MACD is negative and the RSI is falling below 30.

As a result, a drop towards this area would be expected.

Chart By TradingView

Highlights

  • UNI has broken down from the $17.50 support area. 
  • Technical indicators are bearish.

DeFi Index

The DeFi Index has been falling since. While it bounced at a long-term ascending support line on May 19, the ensuing upward movement was short-lived.

On June 21, it broke down from the $1600 support area and is currently in the process of breaking down from the ascending support line. 

This would take the index down to the next support area of $750. 

Technical indicators are bearish, supporting the possibility that the index continues falling.

Chart By TradingView

For BeInCrypto’s latest bitcoin (BTC) analysis, click here.

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Valdrin discovered cryptocurrencies while he was getting his MSc in Financial Markets from the Barcelona graduate school of Economics. Shortly after graduating, he began writing for several different cryptocurrency related websites as a freelancer before eventually taking on the role of BeInCrypto's Senior Analyst.

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