Are SOL, ETH, ZAP and LINK the emergent DeFi and oracle tokens?

The DeFi sector is growing rapidly, with many such projects and their tokens attracting plenty of investor interest. While Ethereum remains the smart contract backbone of the DeFi ecosystem, Solana is emerging as a solid competitor as traders and developers continue to embrace alternatives that offer faster transaction times and lower fees.

As for oracle providers, which bridge the gap between blockchain technology-based smart contracts and real-world applications, there are a handful of project that have shown a lot of promise, including Chainlink (LINK) and Zap (ZAP).

ETH/USD keeps sideways move, trades within $2,800-$3,200

ETH/USD Daily Chart

Up from its recent low of $2,651, Ethereum has been trading sideways as investors wait for a major boost to propel the token upward. Meanwhile, the ETH/USD pair is creating a positive structure in the long run, thanks to the moving average (MA 200) beneath the price that has opened the door to a safe rebound.

Specifically, ETH/USD has been trading in the $2,800-$3,200 range, remaining below the moving average (MA 50) at $3,300. Positive sentiment is expected to push the price higher and beyond the heavy resistance of $3,200, aiming for the $3,500 barrier and beyond the $4,000 level. However, the price could be at risk of a bearish retracement if support fails at $2,700.

SOL/USD trades flat amid market declines

SOL/USD Daily Chart

Solana showed strong bullish momentum in August, reaching an all-time high of $221 on September 9. The divergence pattern visible on the daily chart reinforces the recent pullback from the $221 high. A bullish breakout above the bull flag chart pattern, however, could indicate a push-up to new highs. 

Alternatively, should sellers gain more ground, the next rebound could occur around the $116 level which marks the MA 50. Currently, Solana is trading flat (as also seen in the RSI) within the $123 and $150 levels. Only a strong breakout from this range will confirm the next direction.

ZAP/USD final push through $0.10 preceded by extended consolidation

ZAP/USD Daily Chart

Optimism about an anticipated price surge past $0.10 is keeping the ZAP/USD pair well supported, but traders are looking for more proof, such as a technical bounce, past the $0.0460 handle, to inflate the pair and activate buy orders above the $0.05 pivots. Bulls would then seek an extension above the moving average (MA 50) to accelerate the surge from the extended consolidation.

The scenario is backed by a break above the moving average (MA 50) in August which provided a strong bullish signal. The daily candle (from $0.0440 to $0.0350) is underpinning today's action, with the MA 50 top holding the action. However, traders will remain bullish as long as the $0.0327 support level holds.

LINK/USD looks undecided after pullback off recent highs

LINK/USD Daily Chart

Chainlink's correction from the Sept. 16 high of $32.12 bounced off the $20.81 low on Sept. 21 and is now confined under the flat moving averages of 50 and 200, located at $27.09 and $27.73, respectively. The RSI is currently hovering below the 50 neutral mark, suggesting a slight advantage to the bears.

The trajectory of the moving average reveals a lack of decision and it appears that the price may consolidate for a while. Steering lower, sellers would initially encounter upside pressure from the $20.81 low while to the upside, immediate resistance comes at the moving averages of 50 and 200 before the $32.12 and $36.35 levels.

Conclusion

With many analysts and investors expecting Bitcoin (BTC) and the broader crypto markets to resume their bull run in the final quarter of 2021, notwithstanding more blows to crypto, many altcoins stand to gain. 

DeFi projects have really taken off in 2021, and we can expect to see many DeFi and oracle tokens posting strong gains in the next bull run. 

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