DeFi Coin Technical Analysis

DeFi Coin (DEFC) has closed three daily candles above $0.15, reclaiming a support line from earlier in June, and will likely close a 4th in a few hours from the time of writing.

There is little resistance above before the $0.30 level, so a potential trade set up is forming.

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DeFi Coin Technical Analysis

Earlier in June DeFi Coin was trading in a 10% range from approximately $0.30 – $0.33.

Market Inefficiency

The flash crash in the DEFC price from that range to $0.15 – a 50% drop in less than three days – and then to $0.11 could be considered a ‘market inefficiency’ – where the price of an asset doesn’t reflect its fair market value.

Many altcoins crashed around the same time as over those days Bitcoin lost the $20k support level, and finally hit $17,600 on June 18th – a Saturday when weekend market liquidity was lower and there was extreme fear, uncertainty and doubt (FUD) over an ETH whale being close to liquidation, as well as the Celsius Bitcoin liquidation price being close ($13,600).

After a move like that we could expect a high probability of a bounce to fill in some of that inefficiency – as nothing has changed fundamentally for DEFC, it was just dragged down with the wider crypto market selloff.

Bearish Case for DEFC

Even if the current bearish trend will then continue after that bounce, DEFC could first put in a higher low on the daily chart as high as around $0.30 before breaking down again.

Since DEFC has a low market cap a 100% move wouldn’t require much buying volume, which has been increasing as the chart above shows.

There’s been little price action in between $0.15 – $0.30 in recent months – as no support was found on the 50% drop, there won’t be strong resistance on a move to the upside. Until the $0.30 level where price might be rejected on the first attempt.

Bullish Case for DEFC

If however DEFC is ready to flip bullish after retesting historical support at $0.11, it should first reclaim the $0.30 level, consolidating above it and trading back within that range between $0.30 – $0.33 before further continuation above.

Partly the DEFC price action will depend on Bitcoin, which has recovered to around the $21,000 level but is still trading below the 200 week moving average, as is Ethereum.

Update – DEFC closed another daily candle above $0.15, continuing to build support.


DeFi Coin (DEFC) - Undervalued Project

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