In the past, stimulus checks have boosted the cryptocurrency market. Let’s see if we see another round of bullish marathons this time. Today’s picks are AAVE, LINK, and ETH.
There was a theory that any time the US Boom Bill was passed, the cryptocurrency market would skyrocket and President Biden’s signing of the bill would usher in a new upward cycle. Yesterday, March 6, the Senate approved the $ 1.9 trillion bill. House Democrats are expected to pass the bill on Tuesday, and President Biden is expected to sign the bill next week.
As for the announcements and updates, Aave has partnered with a Lichtenstein-based crypto wallet and swapped Nash to incorporate Aave’s DeFi earnings products, and Aave tokens will be available to trade with Nash. With Nash currently supporting Circle’s digital USD, it is anticipated that the first tradable pair will be AAVE / USDC, while the addition of more pairs such as AAVE / ETH is also expected. The total value of AAVE locked in DeFi has increased significantly in the past 24 hours, increasing USD 7.4% for a total locked value of $ 4.984 billion.
AAVE / USD shows strength by breaking out of the descending parallel channel. The best price action for the pair would be to test dynamic resistance (the top edge of the channel) as support and move up to test resistance at $ 495 and $ 594 above.
Chainlink has partnered with another DeFi protocol from Swingby. Swingby will use Chainlink to adjust the prices on its inter-chain swaps. Chainlink is now switching to FX and expanding its Oracle network to support price data of non-cryptocurrencies with the introduction of EUR / USD. As the company explained on its blog, the FX EUR / USD pair is already used by the Synthetix derivative protocol. While exchanges pull data from FX liquidity providers to offer FX pairs on their trading terminal, Chainlink brings the most accurate FX data to DeFi and Blockchain. The accuracy of the data is ensured by the many oracles that aggregate the price and the network accepts the most accurate of all oracles.
LINK / USD remains above the dynamic support of the ascending channel and above 50MA on a 4 hour chart. Further price hike was halted by a strong resistance at $ 28,600, the breaking of which will result in a jump towards $ 31,4700 and $ 33,000. It is highly recommended to watch out for LINK / USD touching the top of the ascending channel at every point as there is strong resistance.
Ethereum was one of the coins that cheered the stimulus bill, adding 8.38% in value yesterday. This week, Ethereum hit another record: ETH banned from DeFi on March 5 hit $ 8.876 billion, which helped the Ethereum price soar after a price drop.
Ethereum price for Overbit
ETH / USD has made significant progress in turning its bearish sentiment into an uptrend by closing above the dynamic resistance on February 24th. The same dynamic resistance also acts as a section of the inverted head and shoulder formation.
Ethereum price for Overbit
An hourly ETH / USD chart clearly shows that Ethereum is in a bull phase. The pair has completed a breakout of the triangle, the move that supported the breakout is impulsive, the price retested the dynamic resistance as support. There is an obstacle to skipping at $ 1680 and Eth can move up to test another strong resistance area which is at $ 1805- $ 1825.
Next Author: Aziz Kenjaev
Senior Vice President at Overbit. Technical Analyst, Crypto Enthusiast, Former Vice President at TradingView, Medium and Long Term Trader, trades and analyzes the Forex, Crypto and Commodities markets.
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