Analytics

1inch, Celsius (CEL) and PancakeSwap (CAKE) rally as traders return to DeFi

Bitcoin’s (BTC) range-bound action since its breakdown at the $61,000 level has confused analysts. Some are projecting that a sharper correction could be in development while others remain steadfast in their belief that the uptrend will resume shortly.

According to data from Ecoinometrics, history suggests that Bitcoin price breaks out between 300 and 350 days following a supply halving. Currently, 329 days have passed since the latest halving, and if history repeats itself Bitcoin could soon witness a breakout.

However, the 20-day exponential moving average ($4.75) has started to turn up and the relative strength index (RSI) is near the overbought zone, indicating the path of least resistance is to the upside.

If the bulls do not give up much ground from the current levels, it will indicate strength. That will increase the possibility of a break and close above $6.33. If that happens, the 1INCH/USDT pair could resume the uptrend with the next target objective at $8.42.

This positive view will invalidate if the bears pull the price back below $5. Such a move will point to a possible range-bound action for a few more days.

CEL/USD

Celsius (CEL) is attempting to disrupt the traditional banking industry. Some of the loans on the protocol charge interest rates as low as 1%, which is much lesser than the banks. Low rates of lending and high interest rates on deposits have boosted its growth to 500,000 users. In a tweet on March 11, the Celsius team said that it handles more than $10 billion worth of digital assets.

In November 2020, Celsius had paid over $80 million to its depositors and that figure surged to more than $250 million in February. The protocol claims this has been possible because it shares 80% of the revenue generated with the community.

Celsius was recently awarded the “best cryptocurrency wallet” at the fifth-annual FinTech Breakthrough Awards. This could further boost the confidence in the protocol. The team has also teased the upcoming soft launch of their Webapp.

CEL price soared from an intraday low at $4.70 on April 2 to an intraday high at $7.71 today, a 64% increase within seven days. The token picked up momentum after the price broke above the resistance line of the symmetrical triangle. This setup has a pattern target at $8.47.

As seen in the chart above, the VORTECS™ Score for CAKE flipped green on March 22, when the price was $10.13.

From there, the VORTECS™ Score consistently remained in the green and CAKE rallied to a high at $19 on March 31, resulting in an 87.5% gain within 10 days.

CAKE rallied from an intraday low at $9.68 on March 21 to an intraday high at $21.25 today, a 119% rally in 19 days. The bulls are currently attempting to sustain the breakout above the overhead resistance at $19.

CAKE/USDT daily chart. Source: TradingView

If they manage to do that, it will suggest the start of a new uptrend that has a target objective at $28.50. The upsloping 20-day EMA ($16) and the RSI above 66 suggest the bulls are still in control.

However. If the bulls fail to sustain the breakout, the CAKE/USDT pair could drop to the 20-day EMA. A strong rebound off this support will suggest that investor sentiment has turned bullish and it will increase the chance that the uptrend will continue.

On the contrary, if the bears sink the price below the 20-day EMA, the pair could extend its stay inside the current range for a few more days.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, you should conduct your own research when making a decision.

   

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