- SushiSwap, along with multiple other leading DeFi protocols, including dYdX and MakerDAO, initiated a “one to one” experiment.
- The social coordination experiment is to democratize access to DeFi and create a transparent marketplace.
- AAVE price is observing a bearish divergence on the RSI, which could be indicating declines incoming.
SushiSwap price noted a sharp rise during the intra-day trading hours, which was followed by a special announcement by the leaders of the Decentralised Finance (DeFi) space. The announcement marked the first of its kind partnership among such a vast number of competitive protocols.
DeFi protocols join hands
Although the DeFi space is usually considered to move in tandem with the rest of the cryptocurrency market, it managed to achieve something other digital assets have not. In an attempt to make DeFi more accessible to users, top decentralized applications came together to begin an experiment.
The one-on-one social coordination experiment noted the likes of SushiSwap, AAVE, Lido DAO and many other protocols partnering up with other protocols.
Wu Blockchain reported the protocols signing up to be dYdX and AAVE, MakerDao and Element, Opyn and StakeDAO, Lido and Bebop, 1inch and KyberSwap, SushiSwap and Aura Finance, etc.
The purpose of the experiment, as stated by these applications, is to democratize access to the decentralized finance space. At the same time, it is also an effort to make DeFi a “self-sovereign, trustless and transparent” marketplace.
An experiment in social coordination with @AaveAave pic.twitter.com/i4Ehg3tBLU— dYdX (@dYdX) February 6, 2023
With nearly $48.84 billion locked in the DeFi market, the opportunity for growth is immense, and coordination among top protocols will promote higher participation from users. Consequently, this will boost the usage and capital flow in the space, in return benefiting the protocols.
Did AAVE price react similarly?
While the SushiSwap price registered a spike, the price came back down to mark a 3.11% uptick on Monday. Trading at $1.48, SUSHI could be seen struggling to close above the immediate resistance at $1.47. A successful breach of the resistance level would highlight a bullish narrative for the altcoin.
However, in the case of AAVE, the situation seems to be rather different. The Relative Strength Index (RSI) can be seen forming lower highs while the candlesticks are forming higher highs. This indicates the formation of a bearish divergence.
This means that going forward, there is a fair chance that AAVE price might observe some decline in price. As it is, the altcoin has not managed to close above its immediate resistance at $88 while trading at $86.5.
AAVE/USD 12-hour chart
Declining further would bring the price down to $77, but falling through this support level would leave AAVE price with only one shot to bounce off at $69. Invalidating that level and closing below the critical support at $67 would mark a 21% decline in price, bringing the altcoin to December highs.
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.
Follow us on Telegram
Stay updated of all the news
Ethereum whales turn bullish with Shanghai upgrade less than a month away
Ethereum (ETH) whales holding between 1,000 and 10,000 ETH have been scooping up the altcoin consistently for a week. With the countdown to the Shanghai upgrade and the ETH token unlock event, there is a spike in Ethereum demand among retail investors.
Ripple price to close the week with a bang as next week will be crucial for another 20% profit
Ripple price is closing this week with very profitable numbers, even if a fade is ongoing. The fade occurred after bulls received a firm rejection at $0.50 and have been trading lower from that level since. If bulls can keep their hands on this momentum and the Relative Strength Index (RSI) is not overbought, at least some 20% profit is being prepared for next week.
Will Cardano price advance as analysts call it one of the favorite altcoins next to EOS and COLT to pop?
Cardano (ADA) price is making the cut and has been shortlisted by several analysts that have put ADA in their top altcoin, primed to explode to the upside soon. ADA is flirting with a second week of gains and could recover its attempt to hit $0.415 as a crucial level for any further uptrend or downtrend.
Is the new partnering-up strategy the right way for Vechain price to avoid a 30% correction?
Vechain (VET) price had a busy week as several new partnerships were announced. Next to integrating with Dappradar to promote cross-chain visibility, the partnership with Boston Consulting Group might be the one that draws the most attention. Vechain price though is not taking this news in a good way and rather is at risk of tanking further.
Bitcoin: Should you trust this BTC sell signal or wait for $34,000?
Bitcoin price shows a clear picture of its rally after it breached a long-term bullish pattern in mid-January. As the rally takes a breather, sell signs have started to emerge, which is putting investors in a confused state.