Market correction, what’s next for the DOT, UNI and DeFi index

The DeFi Index has been down since hitting a new all-time high on March 20.

Uniswap (UNI) hit an all-time high of $ 36.80 on March 23 but fell sharply shortly thereafter.

Polkadot (DOT) has risen since Feb. 23. However, it did not reach a new all-time high.

Polkadot (DOT)

After falling from an all-time high of $ 42.28 on Feb. 20, DOT bounced three days later and produced a very long bottom wick.

The recovery happened right at the 0.5 Fib retracement level.

While DOT has risen since then, the increase appears to be corrected due to significant overlap.

Technical indicators are declining. The MACD is in the negative zone and the RSI fell below 50. The Stochastic oscillator created a bearish cross and is moving down.

Hence, DOT may be in wave C of the A-B-C regulatory structure.

If so, it can drop to the 0.618 Fib retracement level at $ 23.50. This will also give waves A: C a 1: 1 ratio.


Daily DOT / USDT Chart | Source: TradingView

Highlights

  • The technical indicators on the daily timeframe are declining.
  • DOT may be in wave C of the A-B-C tuning structure.

UniSwap (UNI)

UNI hit an all-time high of $ 36.80 on March 23 but fell sharply shortly thereafter.

It created a shooting star candle, which often resulted in a bearish reversal. Furthermore, UNI has now dipped below the $ 32.80 zone, which is likely to act as a resistance.

The technical indicators on the daily timeframe are declining.

Stochastic oscillator indicator generated a bearish cross. MACD has cut to the negative zone. While the RSI is above 50, it is moving down.

Therefore, the most likely scenario would be the DOT falling to the support zone of $ 27.43 or $ 25.22. These are the 0.5 & 0.618 Fib retracement levels.

The latter level is also a horizontal support level, increasing its importance.


Daily UNI / USDT chart | Source: TradingView

Highlights

  • There is resistance at $ 32.80.
  • There is support at $ 27.43 & $ 25.22.

DeFi Index

The DeFi indicator movement is similar to that of UNI. After hitting an all-time high of $ 2786 on March 20, a decline took place.

This causes the price to drop below the $ 2580 zone, which is currently acting as resistance. Until this area is recovered, we cannot see the trend as bullish.

The technical indicators have yet to be decided. While the MACD is decreasing and in the negative territory, the RSI has created a hidden bullish divergence.

The Stochastic oscillator is declining, but has not yet produced a bearish cross.

Furthermore, there is strong support at $ 2250.

Therefore, the DeFi could rise close to this level and make another attempt to hit a new all-time high.

Daily DEFI / USDTDREP Chart | Source: TradingView

Highlights

  • There is resistance at $ 2580.
  • There is support at $ 2250.

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