As one of the foremost and bullish fund houses, Grayscale has diversified into multiple segments of the crypto industry. With multiple crypto products, ranging from ETFs to trusts and mini trusts, Cathie Wood pioneered CeFi’s attention to the crypto world.
As the bull run begins in the altcoins market, the DeFi tokens are potentially gearing up to hit the 2021 levels. Amid such tokens, the Grayscale DeFi fund holds five top names. So, should you consider buying these tokens or investing in this fund directly? Let’s find out.
Grayscale DeFi Funds
The Grayscale DeFi fund’s management fee is 2.50%, and the performance fee is 0%. The fund holds five big DeFi tokens: Uniswap, AAVE, Maker, Lido DAO, and Synthetix.
Despite the high management fee, the DeFi fund’s performance is questionable. The NAV per share has dropped from a high of $79.25 in late 2021 to the recent price of $15.70.
Nevertheless, as the broader market recovery is shaping up, let’s take a closer look at the DeFi Tokens.
Uniswap (UNI)
With a bullish reversal from the $5.368 support level, the Uniswap token is back in action. The DeFi token has increased by 29% in the last 18 days. The reversal rally surpasses the 23.60% Fibonacci level at $6.487.
Currently, the uptrend is challenging the confluence of the 50-day exponential moving average and the 38.20% level at $7.294. With a rounding reversal, the underlying momentum showcases a potential trend reversal.
Furthermore, the DMI indicator supports the bullish narrative with a potential crossover in the VI lines. However, the downtick in the ADX line reveals a weakness in trend momentum.
Considering the uptrend continues, the Uniswap token price can challenge the 50% line at the $8 resistance level. Optimistically, the uptrend shows potential to reclaim the $10 psychological mark at the 78.60% level.
AAVE (AAVE)
With a market cap of $2 billion, the AAVE token has increased by 21% in the last seven days. Currently, the AAVE token is trading at $134 with an intraday pullback of $1.29.
Further, the AAVE token price is ready for a massive surge with a 23.42% YTD growth and a bullish attempt to surpass the 52-week high at $142. With a bullish golden crossover in the 50—and 200-day exponential moving averages, the underlying bullishness is increasing.
The DeFi token is in a retest phase and ready to bounce back with increased momentum. Optimistically, the Fibonacci level paints the $206 as a potential target, aligning with the 1.618 level.
Maker (MKR)
With a market cap just 50 million shy of the $2 billion mark, the MAKER token has increased by 6.61% over the last 7 days. In the last 24 hours, the DEFI token has increased by 3.64% and is currently trading at $2,096.
In the daily chart, the DEFI token reveals a bullish comeback from $1,720, with a 26% year-to-date growth despite the 48% downfall from the annual high. The DeFi token sustains dominance over the $2,000 psychological mark. Furthermore, with the recent rounding-bottom reversal, MKR price is challenging the 23.60% Fibonacci level at $2,165.
However, the recent downfall leads to a death cross between the 50-day and 200-day exponential moving average. Nevertheless, the recent recovery showcases a shift in trend momentum with a positive crossover in the MACD and signal line. If the MAKER token surpasses 23.60%, the uptrend can scale to 50% at $2,667.
Lido DAO (LDO)
With a market cap of $1 million, the Lido DAO token has increased by 5.30% in the last 24 hours. Currently, it is trading at $1.18, with a 17.6% surge in the last seven days.
In the daily chart, the bullish recovery shows a positive cycle in a longer-term falling channel. The bull run accounts for four consecutive green positive candles and helps sustain the dominance over the $1.00 psychological mark.
As the positive cycle gains momentum, the buyers are ready to challenge the declining 50-day EMA.
The positive crossover in the MACD indicator demonstrates the shift in underlying sentiment. However, the declining gap between the 50- and 200-day EMA is increasing, reflecting an intense bearish phase.
A bullish breakout of the 50-day EMA could potentially challenge the 200-day EMA at $1.96 near the overhead resistance trendline. A breakout above the channel would result in a massive upside move, surpassing the $3.70 mark to potentially reclaim the $1.05 mark.
Synthetic (SNX)
With a market cap of $500 million, the Synthetix token price currently trades at $1.54. In recent times, the DeFi token has shown a bullish resurgence, with a 14% jump in the last seven days.
In the daily chart, the SNX price action reveals a falling channel, accounting for a 77% price drop. The bearish momentum tested the $1.00 psychological mark before a positive cycle started in early August.
Further, the bull cycle within the falling channel accounts for a price jump of 24% over the last 17 days. Currently, the SNX price challenges the overhead resistance trendline 50-day EMA and the 23.60% Fibonacci level at $1.61.
As the buyers are up against multiple bearish elements, the possibility of a breakout is limited. However, the MACD indicator shows a positive trend in the MACD and signal lines, signaling a slightly increased possibility. A bullish breakout rally could test the 50% level at $2.45 near the 200-day EMA.
In conclusion, despite the recent surge in the broader market, the DeFi Tokens in the Grayscale DeFi Fund await critical breakout events for a bull run.
