Uniswap (UNI) is looking to break above resistance at $4.00 while the Synthetix (SNX) token is consolidating gains above $5.00 as bulls target $7.20
Uniswap and Synthetix tokens are among governance tokens looking to outperform the rest of the DeFi market.
UNI is trading near $3.90, up nearly 5% in the past 24 hours. Meanwhile, SNX has cooled off slightly after testing resistance near $5.40, but technical indicators suggest bulls retain the advantage that could see them break above $5.50.
At the same time, Bitcoin’s retest of the area above $19,200 and the bullish sentiment within the broader DeFi market suggest further gains are likely in the short term.
UNI/USD price daily chart. Source: TradingView
The UNI price could surge to highs of $5.20 if bulls hold above $3.80 and then break to $4.50. The chart below shows UNI/USD could rally by more than 34% in the next few weeks to hit the $5.20 target.
However, if bulls fail to hold onto gains, a short term dip could see it drop to the 20-EMA and 50-EMA near $3.60, with action around the area likely to provide clarity of direction for UNI/USD.
The 4-hour chart also suggests bulls face strong resistance at $3.85. If the upside fails, UNI price could drop to $3.78 (20-EMA) and then $3.68 (50-EMA), with the $3.40 providing support in case of increased downward pressure.
SNX/USD daily chart. Source: TradingView
SNX has been trading higher since touching lows of $3.50 on 26 November. The token’s breached the $3.60 resistance area and recently rose to test the $5.40 barrier.
Although bulls currently face tough resistance at the $5.35 area in the form of the 76.8% Fibonacci level, a breakout on upside momentum could catapult SNX/USD to $7.20. The RSI remains above 60 to suggest control lies with the buyers and the EMAs provide further support above $4.45.
Binance’s DeFi Index has also pumped in the past few days, jumping from $625 to highs of $765.
DeFi Index chart. Source: TradingView
Although currently constrained by the 78.6% Fibonacci retracement level at $720, a breakout could see it rally to $800. The RSI is above 64 while the MACD suggests a hidden bullish divergence, but the outlook will flip negative if the index creates a double top at $765 and dives.
Other DeFi tokens likely to see major price action short term include: ChainLink (LINK), Aave (AAVE), yearn.finance (YFI), Compound (COMP) and Sushiswap (SUSHI).
COMP (+18%) and YFI (+7%) stand out, while SUSHI is down 1.1% in the past 24 hours after surging more than 85% in the past seven days.