- Ripple’s decision has finally set off a massive surge in capital influx and could potentially trigger an alt season.
- In June 2020, the introduction of yield farming by the Compound platform kickstarted a DeFi Summer for altcoins.
- Now that the COMP token is rallying when the entire crypto market is either crashing or moving sideways, it could be a hint that DeFi altcoins could pump again.
LDO, UNI and AAVE prices have all breached key levels on the daily timeframe, suggesting a rally around the corner.
The United States (US) Securities and Exchange Commission (SEC) suffered a minor setback against Ripple after the judge announced that XRP is not a security under certain circumstances. This news spread like wildfire on July 13, which caused other altcoins like Stellar Lumens (XLM), Cardano (ADA), Solana (SOL) and Polygon (MATIC) to rally violently. But as the dust settled, only a few cryptocurrencies are rallying.
Read more: A breakdown of alt season and what to expect next?
Compound’s COMP token could set off DeFi rally
Bitcoin (BTC) has been stuck trading in a small range for more than three weeks, causing Ethereum (ETH) and other altcoins to follow its lead. While Ripple’s decision provided a respite, it was all but temporary. As the dust settled, most of the cryptocurrencies that pumped due to the SEC vs. Ripple lawsuit’s decision retraced due to profit-taking. But the Compound platform’s COMP price rallied nearly 31% in under the last 48 hours, showcasing strong buying pressure from interested investors.
Considering that the launch of Yield Farming in June 2020 by the Compound Platform kickstarted DeFi Summer, the recent uptick in COMP price could be signaling something similar. So, investors need to turn their gaze to the Decentralized Finance (DeFi) sector, which could be primed to explode again.
The three cryptocurrencies that will be the focus of this article are - Lido DAO (LDO), Uniswap (UNI) and AAVE (AAVE).
Also read: Top 3 cryptocurrencies to focus on in July 2023 and their targets: SOL, OP, COMP
Lido DAO (LDO) price has bright future
Lido DAO (LDO) price has breached a four-month downtrend by rallying nearly 21% on July 13. As the altcoin pulls back, investors can focus on the buy zone, extending from $2.16 to $1.93 before bulls start reaccumulating and LDO explodes to key take-profit levels.
The targets for LDO include $2.55, $2.81, $3.04, $3.30.
LDO/USDT 1-day chart
Also read: Why Ethereum’s EIP-4844 could kickstart bull run for Optimism (OP), Arbitrum (ARB), Polygon (MATIC)
Uniswap (UNI) price clears critical hurdle
Uniswap (UNI) price has flipped the $5.63 hurdle, which was a major blockade of all bullish attempts from April 21, 2023. This level has been critical since May 12, 2022, flipping into support and resistance levels multiple times. As a result, UNI has been stuck trading inside a range, extending from $3.35 to $9.80.
The recent recovery above $5.63, however, has opened doors for UNI bulls to push Uniswap price to the first target at $6.57, followed by the final target at $8.05.
UNI/USDT 1-day chart
AAVE (AAVE) price needs to overcome one more blockade for quick rally
AAVE (AAVE) price has been on a downtrend since June 2022. Connecting these swing highs using a trendline shows a declining resistance level. The recent upswing between July 11 and 14 overcame this trendline, indicating that the bulls are back.
However, AAVE needs to also overcome the $80.79 hurdle, which is the midpoint of the range, stretching from $45.58 to $116.01. The first target is the $95.77 hurdle, clearing which will allow the buyers to book profits at the $100 psychological level.
AAVE/USDT 1-day chart
Like this article? Help us with some feedback by answering this survey:
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
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.