As Bitcoin seeks guidance, Gnosis, Balancer, and PancakeSwap break out.

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And as the Bitcoin price seeks funding, a series of protocol updates and alliance announcements boosted GNO, BAL, and CAKE.

Today, Ether (ETH) broke through the $3,500 mark, continuing its meteoric rise. Dogecoin (DOGE) has now joined the party, with its price surging past $0.61 earlier today after Gemini exchange added support for the coin, following a similar move by eToro.

Traders may be purchasing DOGE in the hope that Elon Musk will promote the token during his upcoming Saturday Night Live hosting gig.

While the rise of DOGE is tempting, traders should be careful with their bets because barring the jawboning by some popular individuals, the fundamentals of the coin look shaky.

Crypto market data daily view. Source: Coin360

Despite the fact that altcoins are having a field day, Glassnode recently reported that Bitcoin’s (BTC) Stablecoin Supply Ratio has dropped to a 2021 low of 13.4. The SSR is determined by dividing the supply of Bitcoin by the supply of stablecoins, and its all-time low is 9.6. According to Glassnode, the low SSR value is a bullish indicator since it indicates increased supply of crypto-native resources that could pour into Bitcoin and other crypto-assets.

The decentralised finance room has been the standout performer during the altcoin season. Let’s look at the basics and technicals of three DeFi-related tokens that have performed well in recent days.

 

GNO/USD

Decentralized exchanges have risen in popularity in the past few months but they are still plagued with certain shortcomings. One of the problems DEX users face are bots that front-run transactions and cause slippage. According to MEV-Explore more than $477 million in value has been extracted from DEX traders since Jan. 1, 2020.

Gnosis (GNO) recently announced a collaboration integration with Balancer to form the Balancer-Gnosis-Protocol, which aims to combine Balancer’s pool mechanisms with Gnosis’s price-finding system and is scheduled to go live in mid-June to solve the MEV problem and increase the experience of DEX users. This might entice a number of traders who have previously avoided selling on DEXs due to MEV.

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Several new ventures are announced during bull markets when traders’ appetites are strong. The price discovery of a new coin, on the other hand, has been a big problem clogging the crypto market. On April 6, Gnosis introduced a new forum called Gnosis Auction to fix this problem. According to the protocol, the platf can hold open and decentralised batch auctions for any Ethereum project.

GNO has been steadily improving, rising 52 percent in ten days from $171.32 on April 25 to an intraday peak of $261.30 today. The recent sharp rally has driven the relative strength index (RSI) into overbought territory.

 

GNO/USD daily chart. Source: TradingView

When an asset is supported by momentum, it usually does not give up any ground during corrections. The bulls buy any small dip because they believe the rally will resume. On the downside, the first support is $224.07, followed by the 20-day exponential moving average ($206).

A quick bounce from either help indicates that momentum is still bullish and that buyers are purchasing on dips. The bulls would then attempt to restart the uptrend and drive the GNO/USD pair to the next target of $282.54 and then $300.

This bullish view will invalidate if the price turns down and breaks below the 20-day EMA. Such a move will suggest that traders are booking profits aggressively and that could pull the price down to the 50-day simple moving average ($174).

BAL/USDT

Automated market maker Balancer (BAL) announced the developer launch of its next big upgrade named Balancer V2 on April 20. The major change in the new version is that all the assets added by all Balancer pools will be held in a single vault.

Though each pool’s AMM logic will be identical, token control will be handled by the vault. According to the protocol, this will increase gas efficiency and enable the creation of numerous AMM techniques “without having to worry about low-level token transfers, balance accounting, security checks, and smart order routeing.”

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The relationship between Balancer and Gnosis will result in the Balancer-Gnosis-Protocol, which will be interoperable with any DEX but will have the highest gas quality when traded against Balancer pools. Balancer may have an edge over rivals due to the measures taken to cut petrol fees and increase customer experience.

 

The protocol also promotes its Liquidity Bootstrapping Pools for ventures looking to disperse tokens in an equal and capital-efficient manner.

BAL has risen 67 percent in ten days, from $44.73 on April 25 to an intraday peak of $75.08 today. During this time, the price rose from the ascending channel’s support line to the channel’s resistance line.

 

BAL/USDT daily chart. Source: TradingView

The bears have previously protected the channel’s resistance line, so the level is likely to serve as a significant barrier once more. A fall from the current level would most likely find help at the 50-day simple moving average ($56.47).

Both moving averages are rapidly up, and the RSI is above 61, indicating that the bulls have the upper hand. If the market bounces off the moving averages, the bulls will try to lift the price above the channel once more.

If they are successful, the BAL/USDT pair will gain momentum and charge towards the next target goal of $100. If the pair falls below the moving averages, the bullish momentum can wane. A split below the channel would give the bears an advantage.

 

CAKE/USDT

On April 8, PancakeSwap (CAKE) was featured on Cointelegraph as it was selling at $20.91. From there, the token surged to an all-time high of $44.27 on April 30, representing a 111 percent increase in less than three weeks.

On April 30, the protocol introduced an auto-compounding CAKE syrup reservoir, which eliminates the need to manually re-stake CAKE to get the best yields. The protocol announced on May 3 that 18.5 million CAKE tokens had been deposited in the said pool, indicating that the new functionality has gained popularity among users.

Recently, data from DappRadar showed that PancakeSwap had completed 2 million transactions in a 24-hour period surpassing the 1.55 million transactions done on the Ethereum network. The growing popularity seems to have enabled the protocol to complete its biggest burn of 5,143,789 CAKE tokens.

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PancakeSwap launched the BETA version of Prediction on April 28. This allows traders to bet on the direction of the BNB/USDT pair’s close at the end of a 5-minute live phase. If the chosen direction is correct, the trader wins a reward.

Although experienced short-term traders can be accurate in making such forecasts, inexperienced traders should be cautious because it may become addictive and result in a large loss of money in a short period of time.

The most recent leg of CAKE’s uptrend had lifted the RSI beyond 81 on April 29, signalling that the token was overbought in the short term. This may have prompted profit-taking by trend traders, resulting in the latest reversal.

 

CAKE/USDT daily chart. Source: TradingView

The 20-day EMA ($32.75) is the first vital support on the downside. Since March 23, the bears have been unable to plunge and close the price below this help. As a result, the bulls will most likely buy the dip to the 20-day EMA.

A quick bounce from this level would indicate that mood is still optimistic. The bulls would then attempt to lift the market beyond $44.27 in order to restart the uptrend. If they are successful, the CAKE/USDT pair could reach $55.

In contrast to this belief, if the bears drive the market below the 20-day EMA, it would indicate that traders are actively booking gains. This has the potential to drive the market down to the breakout range of $30.

 

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