Morgan Stanley goes bullish on DeFi while Uniswap, Yearn.Finance, and SushiSwap prepare to go parabolic


  • DeFi continues to attract interest from institutions ahead of 2021.
  • Major DeFi tokens remain on track to end 2020 on a strong footing.

In a panel organised by The Block, Andrew Peel, Head of Digital Asset Markets at Morgan Stanley, said that the significant interest in decentralized finance (DeFi) is expected to continue to grow in 2021.

Peel further argued that the technology provided by this sector will be utilised "in some more regulated way" in the coming years and be used for innovation in digital financial infrastructure.

Meanwhile, top DeFi tokens continue to register impressive gains heading into the new year.  

Yearn.Finance (YFI) price targets $30,000

The downtrend that started after Yearn.Finance (YFI) touched a record-high near $44,000 in early September and lasted for two months ended near $,7500. The decisive rebound witnessed in early November lifted the price to $31,780 in December.

The correction that followed found support at $22,000, where the Fibonacci 38.2% retracement of the downtrend is located. Currently, the price seems to have flipped the Fibo 50% resistance at $26,000 as support, suggesting that the next Fibo retracement level at $30,000 could be targeted. Above $30,000, $36,500 aligns as the next hurdle.

On the downside, supports could be seen at $26,000 and $22,000. Currently, YFI is trading at $27,912, up more than 6% on a weekly basis.

Yearn.Finance daily chart

Uniswap (UNI) climbs to fresh multi-week highs

After closing the previous three days in the positive territory, Uniswap (UNI) preserved its bullish momentum on Saturday and climbed to its highest level in more than three weeks at $4.1950. On the 4-hour chart, UNI trades in an ascending channel that extends to $4.50. On November 24th, the price made a sharp U-turn after reaching that level and lost more than 20% in four days. If UNI manages to make a daily close above $4.50, $5 (psychological level) could be seen as the next target.

On the downside, the middle line of the ascending channel at $4 and the lower limit at $3,7 could be seen as near-term support levels. 

Uniswap 4-hour chart 

SushiSwap (SUSHI)

SushiSwap extended its rally into a third straight week and was last seen trading at $2.98, gaining 5.6% and 25% on a daily and weekly basis, respectively. However, the Relative Strength Index (RSI) indicator on the daily chart is approaching the overbought territory, suggesting that the price could stage a technical correction before the next leg up.

Nevertheless, if SUSHI stays in the ascending channel that could be seen on the daily chart, buyers are likely to remain in control of the price. The lower limit of the channel is currently located around $2.4 and unless the price makes a daily close below that level, $3.5 could be reached toward the end of the year.

SushiSwap daily chart

With the growth of institutional interest in the decentralized finance space expected to remain intact in 2021, DeFi tokens look to capitalize on a strong fourth quarter.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch

Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.

More Bitcoin News
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers

Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins. 

More Bitcoin News
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction

Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.

More Solana News
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs

The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.

More Cryptocurrencies News
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy

Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP