DEFI INDEX, Here Is How The Next Waves Can Develop!

Hi my friends,

Welcome to this analysis where we are looking at the Defi-Index, we are watching the 12-hour timeframe perspective, the recent events, the current formational structure, and what we can expect in the upcoming times. Since the Defi-Index showed up with heavily exaggerated downside volatility and managed to stabilize from this again already it has now formed an initial wave-count with a very interesting formation forming within the major wave B of that wave-count, when this formation completes the next assessments can be made and the Index can show up with the further movements ahead however this needs to firstly fully validate before moving into the direction, therefore I detected all the important levels and likely outcomes we should consider.

As when looking at my chart we can watch there how the index is building this huge triangle-formation marked in blue in my chart with the coherent wave-count established within the formation already completing A-C with several bounces from the lower-boundary and the 70- as well as 130-EMA which are the 35- and 65-EMA from the daily timeframe building solid supports within this zone. Now the Index is about to form the major wave D in the structure where it will move on with the particular waves lead into the upper-boundary and testing it anew, this will lead to a pullback and the wave E forming which will finalize the whole wave-count and in the best case bounce strongly within the back-up-cluster marked in blue in my chart, when the Index manages to show up with such price-action this can lead to a great bullish breakout completing the triangle-formation and pointing to upside targets as it is marked in my chart, in this case, it is from extremely high importance that the index does not close below the boundary and move into the bullish-invalidation-zone because it will invalidate the final C-wave-development.

The Defi-Index is in a situation where it has developed some initial strong moves which can build up further when the Index evolves under the suggested circumstances it can especially on the middle-term develop some good bullish potentials however there are still this strong resistance-layers lying above in the structure where bearish pullbacks with prospected downside price action should not be underestimated, this is why new highs may wait till the Index has finally confirmed further movements and especially with the upcoming developments we should also be prepared on possible swift changes in direction and bearish reversals coming in.

In this manner, thank you for watching the analysis, have a great day and weekend, all the best!
"The high destiny of the market is to explicate rather than to speculate."

Information provided is only educational and should not be used to take action in the markets.