Nvidia released a quarterly earnings report last week, that showed that the chip manufacturing giant performed better than analyst expectations.
Nvidia, it turns out, manufactures most of the microcomputer chips used in AI today.
Because of this, several AI crypto tokens exploded upwards, including SIngularityNET (AGIX), Render, Internet Computer, The Graph and so many more.
The entire AI market rallied by around 20% in a single week, to the delight of investors.
However, the AI sector appears to be cooling off this week, and it may be time for the Defi tokens to shine.
According to a recent tweet from analyst, Daan Crypto Trades, there appears to be some kind of "capital rotation" from AI to Defi.
The analyst explained that more often than not in the crypto market, one narrative often gets "replaced" by another, hence the incoming shift.
Daan maintained his stance with the attached image shown above.
According to the charts, Defi tokens are starting to experience upturns, while AI tokens are starting to shed some gains.
This is why in the rest of this section we will be going over three of the most promising defi tokens to keep an eye out for in the coming week:
According to the charts, Synthetix might be aiming for a break above $4.4.
The chart above shows that the cryptocurrency is trading on top of an ascending trendline, and has maintained this uptrend since late 2023.
On 7 February, Synthetix broke above its 20-day moving average and has been maintaining this indicator as a support ever since.
All facts point towards a "sooner than later" break above the minor $4 resistance, before an attempt at breaking above $4.4 for the first time since May 2022.
Why is Lido interesting?
For one, Lido is close to breaking above a very important price level as shown in the chart below:
Lido has been trading on top of an ascending trendline since mid-2022 but has had quite some trouble with challenging its $3.9 all-time high.
On Lido's last attempt to rebound off this ascending trendline, it successfully hit the $3.9 resistance but was then rejected into a retest of $2.56.
The bulls appear to be strong around this price level and have started a rebound move to the upside.
Lido might spend some time ranging between $2.9 and $3.9, but the cryptocurrency's price prospects appear strong.
A break above $3.3 would be a very strong sign that the bulls are ready to break out of $3.9 and make a new higher high.
Maker's recovery from the 2022 bear market seems pretty solid from all perspectives.
The cryptocurrency currently trades at around $2,024
Maker hit a multi-year low of around $470 and has since started to make higher highs at around $1,300 and $1,900.
MKR's recovery is set to be massive, because of the recent break above the aforementioned $1,900.
The cryptocurrency is trading above this price level for the first time since a false breakout in May 2022 and is set to continue upwards if we do not see a break below $1,900.
The interesting part about this setup is that the next resistance point is around $3,080, a whole +$1,000 from the cryptocurrency's current price.
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