Defi coins recover before another drop again
|- DeFi Index may face resistance at 0.618 Fibo level
- YFIUSD unfolds A-B-C recovery
- Wave (C) can push down YFIUSD to 7k Support Area
DeFi Index dropped exactly from projected target area for wave 5, so we are now tracking bigger and deeper A-B-C correction after recent five-wave fall from the highs.
Currently we are tracking a three-wave correction within wave B where ideal resistance would be at the previous wave 4 swing high and 61,8% Fibonacci level. retracement. So, we may see a short-term recovery before DeFi tokens drop again.
DeFi Index 4h Elliott Wave Analysis Chart
As we have been warning about a potential leading diagonal on YFIUSD, we can now see a massive decline which belongs to the first leg (A), so once current three-wave A-B-C recovery within wave (B) fully unfolds, then watch out for another wave (C) sell-off that can push the price even back to 7k support area.
YFIUSD 4h Elliott Wave Analysis Chart
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.