Top DeFi Token Price Analysis – LUNA, AVAX, UNI, and AAVE

Key Insights:

• BTC’s over 10% fall ensured larger market sell-offs, over the last week.
• DeFi tokens had a no different fate as most tokens saw double-digit losses.
• While AVAX, LUNA, and AAVE saw the most losses, UNI maintained above the key support level.

It was a bearish week for the larger cryptocurrency market, as the global crypto market cap sunk below the $1.6 trillion mark. BTC’s fall below the critical support levels pushed the top coin by almost 10% to visit sub-$35,000 for the first time since February.

As highlighted in the FXEmpire’s Crypto Weekly Review, investor angst over inflation and Fed monetary policy hit the appetite for riskier assets, which affected the crypto market, triggering a fall for most top coins.

As bears took over the market, the broader market sell-offs saw $146 billion wiped out to leave the total crypto market cap at $1,571 billion on Sunday evening.

DeFi tokens, much like the rest of the market had a high correlation to Bitcoin facing the brunt of the larger market sell-offs. This piece shall delve into the price action of some of the top DeFi tokens like AVAX, LUNA, Uniswap, and Aave.

Terra (LUNA)

After gaining significantly in terms of price for the first quarter of this year, Terra’s LUNA finally took a break from gains. LUNA’s price fell under the $65 mark for the first time since Feb. 26, triggering major sell-offs for the token.

At the time of writing, LUNA traded at $65.74, noting a 10.43% price loss on the daily time frame and 17.35% losses on the weekly chart. LUNA started the year on a high note recording $91 as the daily price high on Jan. 1; since then, the coin has lost value, trading below $70, at press time.

While Terra’s ecosystem saw considerable strategic developments, over the last 48 hours, the same couldn’t do much for LUNA’s price. Notably, Terra increased the native stablecoin TerraUSD’s (UST) liquidity and utility across ecosystems. Additionally, the blockchain also welcomed a new Inter-Blockchain Communication Protocol (IBC) called Evmos, which is the EVM compatible hub of Cosmos.

That said, LUNA’s total value locked in DeFi saw one of the biggest drops falling by over 17% over the last day.

Avalanche (AVAX)

The beginning of the last week brought decent gains for AVAX as many in the market anticipated a rally. Avalanche saw a strong rebound, over the last week, after testing a key inflection area as its support; however, the recent BTC fall to $35,000 pulled back AVAX’s price.

At the time of writing, AVAX’s price oscillated at $52.66, noting 7.75% daily and 11.37% weekly gains. AVAX was testing the crucial long-term support at $52, and a fall below the same could fuel further losses.

The relative strength index for AVAX was back in the oversold zone after making a recovery from the same on May 1. A push by bulls triggering an RSI reversal could be key to AVAX’s trajectory in the coming week.

Uniswap (UNI)

UNI’s daily chart presented a bearish outlook for the token as the coin traded at $7.21, noting a 3.98% daily loss in price. While UNI’s losses relative to the larger market were sustained, a persistent downtrend could be observed in the coin’s trajectory.

Notably, a price downfall was reinforced in late March when the coin’s rally halted around the $12 resistance mark. UNI’s price has continued the downtrend following the rejection at the $12 mark.

HOWEVER, the RSI for UNI was still battling at the border of the oversold zone. In the coming days, a push from bears can push the RSI in the oversold zone sending the token below $6 if sell-side pressure continues.

Nonetheless, since UNI’s daily gains weren’t as aggressive as some of the other DeFi tokens, the same could prove to be a turning point for UNI if buyers can push prices above the $10 zone in the near term.

Aave (AAVE)

At the time of writing, AAVE traded at $129.20, noting 6.14% daily and 8.61% weekly losses. The coin’s RSI had made lower lows since March-end presenting domination of sellers in comparison to buyers. However, despite the daily gains, the RSI had still maintained just above the oversold zone.

That said, AAVE’s TVL had fallen to the $10 billion mark after recording the high of $19 billion in October last year.

Price-wise, AAVE saw a brief rally following the interest rate hike announcement in the US. For now, the coin was testing the long term support at $129 mark, a fall below this level could cause further sell-side pressure.