After a possible short-term drop, ALPHA is expected to resume its upward movement towards $1.08 and could possibly even reach $1.31.

Doji Signals ALPHA Top?

ALPHA has been on a parabolic upward trend since it began trading on Oct. 10, 2020.

The rate of increase accelerated and ALPHA was able to reach an all-time high price on Jan. 21. However, this created a long upper wick. Depending on the close, it could create a Doji or a shooting star candlestick.

Nevertheless, the trend remains bullish as long as ALPHA is trading above this parabolic support line.

Due to the lack of support below the current price, a breakdown could cause a significant drop. It could potentially fall back to the 0.5 or 0.618 Fib retracement levels at $0.41 and $0.31 respectively.

However, technical indicators are still bullish and have failed to generate any significant weakness.

Short-Term Movement

The short-term chart shows a pronounced bearish divergence in both the RSI and the MACD, which preceded the current drop.

In addition, it provides a support area at $0.64, which has been reached and initiated a bounce.

Furthermore, there is an ascending support line at $0.60.

Therefore, as long as ALPHA is trading above the latter, we can consider the short-term trend bullish.

A breakdown from this support line would also entail a breakdown from the parabolic support line outlined in the previous section. This would likely confirm the bearish trend reversal.

Wave Count

Cryptocurrency trader @CryptoNTez outlined an ALPHA chart which shows an upward movement of nearly 80% over the past three days. However, he did not provide any possible targets for the upcoming upward move.

The most likely count suggests that ALPHA is in an extended wave 3 (shown in white below) of a bullish impulse that began in October 2020. The sub-wave count is given in orange.

The most likely target for the top of wave 3 is found at $1.08 (3.61 Fib extension of wave 1). A likely target for the top of the entire impulse is found at $1.37 (4.61 Fib extension of the same wave).

A decrease below the sub-wave 1 high of $0.51 would invalidate this particular wave count. It would also entail a breakdown from both the parabolic and normal ascending support lines, hence confirming that the trend is bearish.

Conclusion

While the long-term trend for ALPHA seems to still be bullish, a short-term drop that validates the ascending support line near $0.60 could occur prior to the resumption of the upward trend.

For BeInCrypto’s latest Bitcoin (BTC) analysis, click here!

DeFi flash loan lending platform Aave has launched its own L2 scaling solution by allowing its aTokens to be ported to the Plasma powered Matic Network.

Similar to liquidity pool tokens, the Aave aTokens are minted when users deposit crypto-assets into the lending protocol to earn interest. Now they can use and trade maTokens on the high-speed, low-cost Matic Network with the interest of the original aToken remaining intact on Layer 1.

Aave founder and CEO, Stani Kulechov, tweeted about move;

Plasma Powered Token Exchange

Matic is powered by the Ethereum L2 scaling Plasma framework which uses a combination of smart contracts and cryptographic verification to enable fast and cheap transactions. This is obtained by offloading the transactions from the main Ethereum chain into side chains or plasma chains.

The Matic Network has a key functionality called Quickswap, a Uniswap clone that isn’t present on Ethereum Layer-1. The new maTokens can be staked on Quickswap to earn liquidity provider rewards.

Speaking to The Defiant, the creator of the Aave-Matic bridge, Nick Mudge, said;

“Aave’s aTokens are not traded on some exchanges like Uniswap because liquidity providers would lose the interest that aTokens generate. But that is not the case with maTokens on Matic Network, which derive all their value from aTokens.”

Mudge is also the lead developer of the non-fungible token (NFT) staking game, Aavegotchi. He wanted to reduce the cost of game-based transactions which can now be done with cheaper maTokens transactions on Matic.

When asked about accruing interest on the Matic Network, Mudge explained;

“It’s not updated on Matic network. When maTokens are sent to Ethereum they are converted to their aToken amount PLUS interest.”

AAVE Token Price Update

Aave is currently the second largest DeFi protocol by total value locked according to DeFi Pulse which reports it at just over $3 billion.

Its native AAVE token, which has been on fire recently, has retreated a bit alongside the general crypto market slump today. It has fallen back to $176 as of press time.

AAVE was the best-performing DeFi asset in 2020 by a clear margin and has made over 20% in the past seven days to hit an all-time high of just over $200 on Jan. 19.