Market Flips Bullish — Ready for the Next Move? The DeFi narr | Bitcoin Bravado

Market Flips Bullish — Ready for the Next Move?

The DeFi narrative has finally pushed beyond the cadre of small to mid-cap lending platform tokens like LEND, COMP, and CEL.

As the realization crystallizes that Ethereum contains DeFi value dominance, ETH begins to see action along with several other majors.

Let's take a look at a few storylines in play for the upcoming week.
Is $ETH undervalued? The market seems to think so

Is $ETH undervalued? The market seems to think so

With 4 million ETH ($1.2B) locked into DeFi smart contracts, traders have finally agreed that ETH is an undervalued asset.

Adding to the bullish propulsion firing the engines right now is the 2.5 year downward cycle ETH appears to be escaping from + the upcoming ETH 2.0 testnet (August 4th).

Bulls are salivating at the magical $360 target, a major point of resistance wherein an epic battle is sure to form. Should ETH reach and surpass $360, bulls will be well and fully in control of painting the digital asset's mid-term destiny.

BTC correlation with legacy markets might be subsiding

For weeks, a major consideration for BTC traders has been the asset's strong correlation with the S&P 500.

However, with the S&P 500, Dow Jones, and Nasdaq all flipping red before the weekend, Bitcoin has decidedly turned up with several majors in tow.

The decoupled price action is also taking place over the weekend, adding intrigue to what will happen when markets get back online Monday.

Bitcoin's divergence from legacy market performance bodes well for cryptocurrency traders, but a strong *downward* move in traditional assets will likely throw cold water on the red hot crypto market.

Which tokens are making the next move?

DeFi tokens went, Ethereum is going, Bitcoin is rising, and both Cardano & Litecoin have broken out.

So, who's joining the party next?

Other majors have been relatively silent thus far, namely XRP, XTZ, TRX — three projects with staunch investor bases and much to gain from a bull market.

Additionally, with small to mid-cap altcoins having provided face-melting gains over the past few weeks, the theory goes that profits flow back into larger caps before launching BTC into space.

While some tokens, such as ADA, have already posted massive rallies, others have seen gains in the 15-20% range, which, for crypto, doesn't constitute a *real* move yet.

Watch for moves coming from the top-20 marketcap tokens if this market rally is truly a sustainable one.