Search ForexCrunch
  • Uniswap falls victim to the liquidity mining program expiration.
  • Aave bulls are struggling on approach to strong resistance.
  • Compound will gain ground once $130 is cleared.

The cryptocurrency bulls have been roaring back, driving all major coins to local highs. Bitcoin settled above $18,000 and tested a new high of 2020 at $18,988; many top altcoins followed the lead showing massive gains on a week-to-week basis.

However, several digital assets failed to capitalize on a global rally and lost ground compared to the registered levels seven days ago.

The outsiders of the week are Uniswap, Aave, and Compound. Let’s see what happened and if they have a chance to catch up with the rest of the market.

Uniswap is bleeding as users take money from the protocol

Uniswap (UNI) is the 30th largest digital asset with a current $800 million market capitalization. The coin topped at $4.27 on November 15 and hit $3.42 on November 20. At the time of writing, UNI/USD is changing hands at $3.5, down over 14% on a week-to-week basis.

UNI’s woes are caused by the liquidity exodus from the Uniswap protocol. The project. Users drained nearly two-thirds of Uniswap’s liquidity since the start of the week as the liquidity mining reward program expired on November 18.  

According to DeFi Pulse, the platform lost its leadership and now takes fifth place with the total value locked (TVL) of $1.3 billion.

Uniswap's TVL

Uniswap’s TVL

Meanwhile, the charts show that the price sits above the local support created by $3.5. This barrier served as strong resistance at the beginning of October. Now it has been verified as support. The price can rebound to $4.0 and retest the recent high of $4.7 as long as it stays above this area. Once it is cleared, the sell-off may be extended with the next focus on $2.9.

UNI/USD 4-hour chart

UNI/USD 4-hour chart

Aave faces a stiff resistance

Aave is also among the losers of the week. The coin with the current market capitalization of $790 million tested $83.9 on November 20 only to collapse to $62.8 on Sunday, November 22. At the time of writing, UNI/USD is changing hands at $68, down over 5% on a week-to-week basis.

Aave is the fourth-largest DeFi protocol that allows users to borrow money against a broad range of digital assets. The loans are provided in a P2P fashion, while interest rates are calculated and adjusted algorithmically based on supply and demand. Currently, over $1.3 billion is locked in the protocol as collateral.

Based on IntoTheBlock’s “In/Out of the Money Around Price” model, Aave faces a stiff resistance above the current price.  The IOMAP cohorts show that over 1,700 addresses previously purchased around 700,000 Aave between $68 and $74.  

Aave In/Out of the Money Around Price

Aave In/Out of the Money Around Price

Meanwhile, on the downside, the supply is mostly non-existent and can be easily absorbed by the sell-off, triggered by the rejection at $68.

Compound’s fate hinges on the $130 barrier

Compound (COMP) is the 42nd-largest digital asset with a current market capitalization of nearly $500 million. The coin has bottomed at $80 on November 3 but stopped short of the psychological resistance of $130. At the time of writing, COMP is changing hands at $119.8, down 4.5% on a week-to-week basis.
COMP is most actively traded on Binance and Huobi Global with an average daily trading volume of $169 million.

From the technical point of view, $130 is a substantial barrier that served as formidable support in July and September. Now that it was verified as a resistance, the bulls may struggle to get it out of the way. Once it happens, the recovery may be extended to $163.

COMP/USD, daily chart

COMP/USD, daily chart

On the downside, a rejection at $130 will bring the channel support of $100  into focus. Once it is out of the way, the sell-off will likely gain traction, with the next focus on the recent low of $80.

Expert score


Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.