Uniswap price keeps breaking barriers. UNI rose to an all-time high of $13 as demand for DeFi tokens continues to rise. Similarly, Aave price rose to an all-time high of $288 as the total value locked in Decentralised Finance (DeFi) soared to more than $26 billion.
The background: For starters, DeFi is a relatively new industry that is seeking to break the traditional barriers of the finance industry. For example, using DeFi, one can create a global crypto-focused banking organization.
In the past few months, the industry has been on an impressive growth path. The value locked in DeFi has moved from less than $1 billion in January last year to today’s $26 billion.
Aave and Uniswap are among the biggest projects in DeFi with more than $3.89 billion and $3.19 billion of value locked in them. Their coins are also highly-valued in cryptocurrencies. Today, Uniswap and Aave have a market cap of $3.52 billion and $3.3 billion, making them the 14th and 16th largest cryptocurrencies.
What happened: After dropping last week, Uniswap price and Aave price bounced back during the weekend. In fact, they have risen by more than 20% and 12% in the past 24 hours. This rally is in part due to the overall demand for digital currencies. Also, it is because of the rising value locked in them as shown below.
The chart below shows that Aave price has been on a steady uptrend in the past few months. Today, it is trading at $257, which is a few points below yesterday’s high of $288. On the four-hour chart, the uptrend is being supported by the 15-day and 50-day exponential moving averages.
However, after the substantial rally, it is possible that some bulls will start taking profit. If this happens, Aave price could pull-back to the support at $210 and then resume the upward trend.
A look at the four-hour chart shows a close resemblance between Aave and Uniswap price. The price is still above the 15-day and 50-day EMAs. Also, it has pulled back slightly after reaching an all-time high. Therefore, while the overall trend is bullish, it is possible that the price will retest the support at $9.87 and resume the upward trend.
