Aave Technical Analysis: LEND/USD hits $0.9, DeFi dominance at 21%
|- Aave is at the helm of the DeFi craze with $1.53 billion of funds locked in the project.
- LEND/USD reverses to seek balance amid overbought conditions as highlighted by the RSI.
Aave is the most dominant decentralized finance cryptocurrency. According to data by DeFi Pulse, $1.53 billion is the value of funds locked in the project. This is approximately 21.09% of the total $7.24 billion locked in the DeFi ecosystem.
The growth of LEND as a DeFi darling has also been reflected in the meteoric growth of the token value. On Wednesday, LEND/USDS hit highs marginally above $0.9, a significant growth from the value at the beginning of August ($0.3). At the time of writing, LEND is trading at $0.8076 following a minor retreat from the monthly high.
The price is has slipped under the accelerated trendline (broken line) in away boosting the bearish leg that eyes initial support at the 61.8% Fibonacci retracement level taken between the last swing high at $0.9095 to a swing low of $0.5061.
Technically, Aave is poised for more downward action based on the slopping RSI and MACD. The former hit overbought levels during the token’s run-up to $0.9. Such a reversal is expected especially after a consistent rally like the one Aave had in the past few days.
On the other hand, the MACD shows that buying pressure is not entirely ousted. This means that Aave could hold above the 61.8% Fibo support while buyers plan the next run-up above $1.0.
LEND/USD4-hour chart
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