Top 3 Decentralized Finance (DeFi) cryptocurrencies ready for breakout rally: LDO, UNI, AAVE

Ripple’s decision has finally set off a massive surge in capital influx and could potentially trigger an alt season.
In June 2020, the introduction of yield farming by the Compound platform kickstarted a DeFi Summer for altcoins.
Now that the COMP token is rallying when the entire crypto market is either crashing or moving sideways, it could be a hint that DeFi altcoins could pump again.

LDO, UNI and AAVE prices have all breached key levels on the daily timeframe, suggesting a rally around the corner.

The United States (US) Securities and Exchange Commission (SEC) suffered a minor setback against Ripple after the judge announced that XRP is not a security under certain circumstances. This news spread like wildfire on July 13, which caused other altcoins like Stellar Lumens (XLM), Cardano (ADA), Solana (SOL) and Polygon (MATIC) to rally violently. But as the dust settled, only a few cryptocurrencies are rallying.

Compound’s COMP token could set off DeFi rally

Bitcoin (BTC) has been stuck trading in a small range for more than three weeks, causing Ethereum (ETH) and other altcoins to follow its lead. While Ripple’s decision provided a respite, it was all but temporary. As the dust settled, most of the cryptocurrencies that pumped due to the SEC vs. Ripple lawsuit’s decision retraced due to profit-taking. But the Compound platform’s COMP price rallied nearly 31% in under the last 48 hours, showcasing strong buying pressure from interested investors.

Considering that the launch of Yield Farming in June 2020 by the Compound Platform kickstarted DeFi Summer, the recent uptick in COMP price could be signaling something similar. So, investors need to turn their gaze to the Decentralized Finance (DeFi) sector, which could be primed to explode again.

The three cryptocurrencies that will be the focus of this article are - Lido DAO (LDO), Uniswap (UNI) and AAVE (AAVE).

Also read: Top 3 cryptocurrencies to focus on in July 2023 and their targets: SOL, OP, COMP

Lido DAO (LDO) price has bright future

Lido DAO (LDO) price has breached a four-month downtrend by rallying nearly 21% on July 13. As the altcoin pulls back, investors can focus on the buy zone, extending from $2.16 to $1.93 before bulls start reaccumulating and LDO explodes to key take-profit levels.

The targets for LDO include $2.55, $2.81, $3.04, $3.30.

LDO/USDT 1-day chart

Also read: Why Ethereum’s EIP-4844 could kickstart bull run for Optimism (OP), Arbitrum (ARB), Polygon (MATIC)

Uniswap (UNI) price clears critical hurdle

Uniswap (UNI) price has flipped the $5.63 hurdle, which was a major blockade of all bullish attempts from April 21, 2023. This level has been critical since May 12, 2022, flipping into support and resistance levels multiple times. As a result, UNI has been stuck trading inside a range, extending from $3.35 to $9.80.

The recent recovery above $5.63, however, has opened doors for UNI bulls to push Uniswap price to the first target at $6.57, followed by the final target at $8.05.

UNI/USDT 1-day chart

AAVE (AAVE) price needs to overcome one more blockade for quick rally

AAVE (AAVE) price has been on a downtrend since June 2022. Connecting these swing highs using a trendline shows a declining resistance level. The recent upswing between July 11 and 14 overcame this trendline, indicating that the bulls are back.

However, AAVE needs to also overcome the $80.79 hurdle, which is the midpoint of the range, stretching from $45.58 to $116.01. The first target is the $95.77 hurdle, clearing which will allow the buyers to book profits at the $100 psychological level.

AAVE/USDT 1-day chart

Like this article? Help us with some feedback by answering this survey:

Share: Cryptos feed

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.

Join Telegram