DeFiChain (DFI): Can a successful bottom formation succeed?

• Course (DFI): $0.91 (previous week: $0.92)
• Short-term resistances/goals: 1,02 USD, 1,10 USD, 1,19 USD, 1,38 USD, 1,51/1,67 USD, 2,00 USD, 2,28/2,45 USD, 3,01/3,26 USD, 3,67 USD
• Short-term supports: 0,84 USD, 0,76 USD, 0,64 USD, 0,58/0,54 USD, 0,44 USD

DFI Recap:

• Recently it became quiet around DeFiChain. After the DFI price showed a remarkable price development in 2021, the price went downhill steeply in the last four trading months.
• Starting from the high for the year at USD 4.89, the crypto project DeFiChain, which is popular in the German investor space, slipped by 82 percentage points to currently USD 0.76.
• For a long time, the DFI course had held up relatively well in relation to other crypto projects. It was not until May 9th that the relapse below the then key support at USD 4.05 caused a real sell-off.
• Within three trading days, the DFI course lost around 40 percent in value.

Terra-Crash is partly to blame for the collapse in prices

• According to Julian Hosp, one reason for the price crash is the collapse of the Terra (LUNA) ecosystem. Shortly after Terra’s stablecoin UST lost its peg to the US dollar, DeFiChain’s in-house stablecoin called dUSD also “depegged”.
• Investor uncertainty as to whether the DeFiChain is threatened with the same fate as the Terra blockchain before it caused investors to increasingly exit the project.
• DeFiChain followed the entire crypto market south and corrected as much as other crypto currencies.
• The announcement that the DeFiChain should be compatible with Ethereum’s Virtual Machine (EVM) from October did not lead to a new price rally

Bullish Scenario (DFI):

• Although the DFI price was able to recover somewhat after forming the low for the year in the area of ​​USD 0.76 and rose back above the 11 Fibonacci retracement of the complete price movement at USD 0.84, for a breakout back above the EMA50 (orange ) it was not enough in the last few trading days.
• Any attempt by DeFiChain to rise was abruptly halted at this moving average line.
• The bulls must first form a bottom above USD 0.84 in order for the technical situation to improve.
• Then it is important to overcome the cross resist from Supertrend and EMA50 at USD 1.02 per daily closing price.
• If the DFI price recovers above this strong resistance level and can also break through the weekly high at USD 1.10, a subsequent increase up to the next relevant resist at USD 1.19 should be planned.
• This is where the first directional decision is made. If this chart mark is recaptured, the recovery could extend to the last historical high of July 22, 2022 at USD 1.38.
• If the DFI price can recapture this resistance level in the coming weeks despite increased profit-taking, the green target zone between USD 1.51 and USD 1.67 will become the focus of investors.
• In addition to the higher-level 23 Fibonacci retracement, the low of the correction in July 2021 can also be found here.

The chart picture brightens up a bit again

• Only when the DFI price sustainably overcomes the resist at USD 1.69 does the chart brighten up more clearly and the next price target at USD 2.00 could be approached.
• In addition to the EMA200 (blue), the tear-off edge before the sell-off on June 11, 2022 runs in the area around USD 2.00. DeFiChain should initially bounce off here.
• If the overall market also struggles in the coming months and the announced improvements at DeFiChain are implemented as planned, a recovery to the orange resistance area between USD 2.28 and USD 2.45 cannot be ruled out.
• In addition to the lows from January of this year, the 38 Fibonacci retracement can also be found here. For the time being, this area represents the maximum increase target.
• If the bulls can also recapture this zone in the long term, the next target area of ​​DeFiChain between USD 3.01 and USD 3.26 will be activated.
• The DFI price could only rise to the maximum long-term price target in the form of the Golden Pocket at USD 3.67 when the buyer side has also permanently overcome this area.
• In the current situation, investors should definitely wait for the price to stabilize above USD 1.10 before making new entries in DeFiChain.

Bearish Scenario (DFI):

• The bears also have the scepter firmly in their hands at DefiChain. Any attempts to rise in the past few weeks were fended off at the latest at the EMA50 in the daily chart.
• If the DFI rate falls below the USD 0.84 mark again in the short term, a retest of the annual low of USD 0.76 is likely.
• If the DFI price does not stabilize here and dynamically falls back below this support, a continuation of the trend to the south should be planned.
• The DFI rate should initially target the 127 Fibonacci extension of the last move at $0.64.
• If the bulls remain abstinent after reaching this support, the area between USD 0.58 and USD 0.54 will come into focus.
• Next to the 138 Fibonacci extension is the old breakout level from December 17, 2020 at USD 0.54.
• Here, the bulls will do everything possible to stabilize the price. If the reversal attempts fail here too, the DFI price threatens to break away to the bearish target price of USD 0.44.
• Here is the 161 Fibonacci Extension. For now, this support level represents the maximum price target on the bottom.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 1.00.