So I got a decent of (negative) feedback regarding the $DEFI $DEFT article I posted on 05Aug-25 https://ceo.ca/@MTL_Finest/defi-about-to-looooose-it I figured it warranted a follow up.
05Aug to 11Aug $DEFT rallied to 3.01 where the confluence of the weekly 10ema (purple) , daily 21sma (blue dots) and the .618 of the Apr25-May25 move up produced sellers. A pretty standard affair.
Today 15Aug the .786 was test, the lwo of day was $2.20 and, generated buying for a bit but $DEFT closed at @2.31, unable to keep the bid.
Zooming out to the weekly timeframe (below) , we are definitely entering a zone of interest where there may be strong support. However, if this is a 5 wave decline, we may get a washout the 1.618 extension of wave 4 at $2.20 was all but essentially hit today with the lows at $2.22 but we are just at the top of the big zone of interest.
The selling may be over, we do not know yet as there is no rotation up to speak of. The next downside extension, 2.618 of wave 4 is at $1.70. We may get there?
Once wave 5 is complete, if it's a fast and violent washout, the subsequent rebound could be violent as well. Of course all of this is is subjective, hypothetical and impacted by a ton of other factors, not least of which is the overall crypto market.
