The DeFi Pulse Index ($DPI), a key indicator of the decentralized finance (DeFi) market's health, is showing promising signs of recovery, breaking above the $125 price mark on Jan. 30.
While $DPI has experienced a 5.6% decline over the past week, it has rebounded with a 4.3% increase in the last 24 hours, currently sitting at $126.7.
This price increase is reflected in the market capitalization, which has also risen by 4.4% to $20.41 million within the same period.
However, trading volume tells a different story. The 24-hour volume for $DPI is $48.7K, a decrease of 26% from the previous day, indicating a recent dip in market activity.
The DeFi Pulse Index tracks the performance of leading DeFi assets, providing a simple means of participation for investors in this fast-paced sector. $DPI tokens are on DEXs; Uniswap V2 (Ethereum) boasts the most popular trading platform for $DPI and has seen a 24-hour volume of $46,7K.
Technical data from TradingView for $DPI presents a mixed bag of signals, making it challenging to draw a definitive conclusion about its short-term trajectory.
Analyzing the 4-hour chart shows that oscillators are generally in a neutral sentiment. The Relative Strength Index is at 52, meaning that neither overbought nor oversold conditions prevail.
The Commodity Channel Index, Average Directional Index, Williams Percent Range, Bull Bear Power, or Ultimate Oscillator all come out neutral. Such a weak momentum in both directions may be indicative of the consolidation of $DPI in the price stabilization mode without an evident trend to the upside or downside.
However, a noteworthy exception is the Momentum indicator, which flashes a "Buy" signal, potentially hinting at some underlying buying pressure. The MACD Level also indicates a "Buy" signal, reinforcing this potential for upward movement.
Moving averages do paint a slightly more optimistic picture, but the outlook is still ambiguous. While a "Buy" action has been suggested by quite a few short-term moving averages including 10, 20, and 30-period Exponential and Simple Moving Averages; on the other hand, long-term moving averages point to "Sell" actions. The 50, 100, and 200-period Exponential and Simple Moving Averages all indicate "Sell" actions.
This means that a tug-of-war may be building between buyers and sellers. Short-term MAs, being highly responsive to current price action, point to possible short-term momentum up. In contrast, longer-term MAs reflect a general trend over the past and, thus, hint at a predominant downward pressure.
Just as diversified indices like DeFi Pulse Index offer a simplified way of navigating the DeFi landscape, other corners of the cryptocurrency market are adopting similar strategies.
In this regard, an index that is recently launched and seeks to do the same for meme coins, referred to as the Meme Index ($MEMEX), offers a structured approach to an otherwise highly volatile sector for investing.
Meme Index differs itself based on several standout features. This is because Meme Index features various indexes of investment and goals. The index of "Meme Titan" targets established large-cap meme coins such as DOGE and SHIB. This means that more risk-orientated investors interested in higher return investments can resort to the use of the index called "Meme Frenzy," whose indexes track even newer, therefore more volatile meme coins.
Meme Index puts strong emphasis on community governance. $MEMEX token holders elect and determine the composition of these indexes through a voting mechanism. This method gives a decentralized, democratic character and staking mechanism in a way that these indexes will always respond dynamically with the market and serve to incentivize the holding of $MEMEX by contributing to the security and stability of the platform.
Currently, Meme Index is in its presale phase, having already raised over $3 million.
Meme Index's security, bolstered by audits from Coinsult and SolidProof, not only fueled its $3 million presale success but also attracted a strong community, with 22,000 Twitter followers and 3,500+ Telegram members.
Early investors can purchase $MEMEX tokens at a potentially favorable price, which is currently $0.0157183.
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