Analyst Rajarshi Mitra revealed that decentralized finance is bleeding through analysis of popular DeFi coins yearn.finance (YFI), Band Protocol (BAND) and Aave (AAVE).
The decentralized finance (DeFi) world was showing an extraordinary performance last month after the pandemic hit the bottom in March. However, according to the data, DeFi started to bleed. According to Coingecko data, DeFi market value has declined by nearly 50% since September 1.
Analyst Rajarshi Mitra suggested that popular DeFi tokens are in the process of significant consolidation and analyzed for YFI, BAND and AAVE coins. Mitra states that the DeFi sector is not doing well in general, but also predicts that there will be optimistic developments with the start of Ethereum 2.0 soon.
Rajarshi Mitra’s yearn.finance (YFI) analysis
- It declined after reaching 43 thousand dollars on September 12.
- Currently, the price has broken down to the decreasing triangle model and fell to the $ 10,200 band.
- From the technical perspective, YFI may drop to around 8 thousand 320 dollars.
- Looking at historical values, it does not serve as a strong support at this level.
- For this reason, the price can drop to 6 thousand 200 dollars before finding a suitable support.
Band Protocol (BAND) analysis of Rajarshi Mitra
- BAND cannot benefit from an inverted “head and shoulders” model as desired.
- After reaching a record value of $ 15.5 on September 1, the price is now down to $ 4.2.
- The price showed a bearish trend in the expected chart pattern, falling below the 200-day SMA at $ 4.75.
- The closest support that can be held is located at around $ 3.25.
- The 200-day SMA may overlap with the 50-day SMA to form a cross pattern called “death cross”.
Aave (AAVE) analysis by Rajarshi Mitra
- Looking at the hourly chart, it is observed that the price dropped from $ 42.25 to $ 29.12 on October 24.
- There has been a 23.6% decline in the last 7 days.
- The price even dropped below $ 32, its lowest level.
- It seems difficult to predict support and bottom areas as it is currently located in a previously undiscovered region.