• The price breaks the bear flag pattern and marks the genesis of the bullish phase.
• The FTX’s collapse caused users to shift to DeFi lending platforms from CEX.
• JP Morgan commenced using AAVE smart contracts, shifting it to a positive path.

The FTX meltdown has sent users fleeing from centralized exchanges to depend on decentralized platforms and wallets to trade cryptocurrency. The most popular DeFi platform is AAVE, attracting users’ positive sentiments. 

Big whales also start transacting on a public blockchain using AAVE smart contracts, setting a huge milestone for DeFi. These positive tries set the market for AAVE in a better position to recover from the crunch.

The diagram tale

The market witnesses heavy sell-offs and bulk purchases occurring simultaneously. The price takes support at the $55 level and rises to break the bearish trend. The BB bands diverge concavely but with great distance as the price falls, taking support before breaking the downtrend. The uptrend is in its initial stages but will soon be fully visible.

The CMF indicator has turned to signal the upcoming uptrend and rising prices. The MACD indicator is about to converge as it moves closer to the signal line to converge and transitions into a bullish market. The RSI indicator rises from the edge of overselling to a more neutral zone. It may move closer to the 50-mark average.

A closeup 

The price rise is moving gradually to form an uptrend. The MACD indicator has turned bullish after the divergence paired with many purchases. It may diverge further and record heavier purchases. The RSI indicator moves closer to the neutral zone, floating nearer to the 50-mark, and may cross it soon. 

Conclusion

The well-known cryptocurrency exchange FTX crashing caused trauma to the crypto space, with widespread negative sentiments amongst the users and broken trust in the whole industry. In such situations, DeFi platforms and DEX are the ones regaining their trust and providing remedies to their wounds.

Technical levels

Support levels: $55.8 and $54.2

Resistance levels: $89.3 and $95.8

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Ritika Sharma

With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.