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TRB Leads Way in DeFi Comeback – Tellor Price Up 190% Since Start of May

Published May 10, 2024 11:44 AM
Valdrin Tahiri
Published May 10, 2024 11:44 AM
By Valdrin Tahiri
Verified by Peter Henn

Key Takeaways

  • Tellor (TRB) has been, by far, the biggest gainer of large cap DeFi tokens since the start of May.
  • SUSHI and AAVE are in the 2nd and 3rd places but with much lower rates of increase.
  • TRB created a double bottom pattern and broke out from a resistance trend line on May 5.

Decentralized Finance (DeFi) reached its peak in the DeFi summer of 2020, and has not enjoyed nearly as much interest since. This is despite numerous well-known decentralized exchanges (DEX) launching in various blockchains. Volume in several DEXes revived in March and April 2024, but the price of DeFi tokens has not reflected this.

An analysis of the DeFi index in 2024 notes its struggles, but also shows several individual tokens that have bucked the trend with a positive performance. TRB is the most notable exception with a nearly 200% increase since the start of May.

DeFi Index Struggles in 2024

The DeFi Index has struggled since the start of the year. It currently trades very close to its $998 price on January 1. While it initially increased, leading to a new yearly high of $1,478 on March 14, it has declined since, falling under a descending resistance trend line.

The downward movement led to a new yearly low of $710 on April 13. The DeFi Index bounced afterward creating a higher low on May 1. However, it still trades below the descending resistance trend line, which currently lies at $1,000.

DeFi Index Performance 2024
DeFi Index Chart | Credit: TradingView

The daily RSI and MACD both give bullish readings, since they are trending upward and have generated bullish divergences. However, neither have crossed above their bullish thresholds, and the price still faces critical diagonal and horizontal resistance above.

DeFi Components Performance
Custom Daily Chart | Credit: TradingView

The DeFi index weights get rebalanced weekly. Currently, the cryptocurrencies with the highest weight  are LINK and TRB, both with over 11%. MKR is third at 6.5%

When looking at the individual performance of the components of the index and other DeFi tokens, it is clear that TRB is in the lead since the start of May, with an increase of 187%. SUSHI and AAVE take the 2nd and 3rd spots with upward movement of 23 an 12%, respectively.

Double Bottom Leads to Breakout

The TRB price completed a five-wave upward movement (white) starting in June 2023, which led to a new all-time high price on December 31.

It is worth noting that the price reached an all-time high of $629 before crashing in the next 24 hours and closing at $183. The 58% upper wick sparked rumors of market manipulation by the Tellor Network team , who deposited over 4,000 tokens to Coinbase a few hours before the crash.

TRB Price Breaks Out
TRB/USDT Daily Chart | Credit: TradingView

Since then, TRB has fallen under a descending resistance trend line, culminating with a low of $41.44 on April 13. The low validated the $48 horizontal area as support.

After creating a higher low in May, TRB broke out from the descending resistance trend line, reaching a high of $149 on May 8. The breakout implies that the correction is over.

TRB Price Prediction: How Long Will the Increase Continue?

A closer look at the recovery shows that TRB created a double bottom that was combined with bullish divergences in both the RSI and MACD (green lines). This is another sign pointing to a completed correction.

Following that, the parabolic increase is indicative of a wave three in a new five-wave upward movement. In this increase, wave three has extended considerably, and the price is approaching the 0.618 Fibonacci retracement resistance level at $178.

Short-Term Movement
TRB/USDT Daily Chart | Credit: TradingView

The most likely outline for the future movement will be a rejection at $178, starting wave four. Then, wave five can end near the daily close all-time high at $262.

Tellor Leads the Way for Decentralized Finance

The price action, indicator readings and wave count for TRB all align to give a bullish outlook for May and beyond. While the TRB price could face resistance at $178, it has likely started a new upward movement. TRB is ranked #186 based on its market capitalization, so it still has ample room for increasing.

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