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LEND (AAVE): Is it going up forever?

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@beehivetrader
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If you remember my post on Link where I called a blow off top, (which still may be invalidated), I want to share another coin which may be overvalued at the current time.

In case you shorted Link, my suggestion would be to move the stops in your desired direction.

Lend has remained one of the best performing assets since 2019, and has delivered a face melting 13000% rally from the bottom.

I'm going to keep this post short and just focus on the charts (Simple horizontal supports and resistances.)

Let's have a small look at the charts:

Chart: Lend/USD, 1D, (Zoomed out)

Overall Bias: Neutral (critical) link: https://www.tradingview.com/x/V8umenzr/

Points to note:

  1. We are approaching a major resistance
  2. It delivered a whopping 13000% gain with brief retracements, and early buyers will look into the opportunity of cashing out.
  3. Even though it may look small on the chart, pullback can even be more than 60% and can cost us dearly if it starts going down. (Remember Matic when it dumped?)
  4. DeFi tokens are mostly overvalued, and 90% of the people are using the DeFi platforms only for yield farming (I'll come up with a post on this soon)

Note: I'm still not implying that you short it of something like that, but I feel its overvalued. I may be wrong, so I'd urge you do some additional research before taking a financial decision!

Even if the BTC charts look like it broke above, but who knows what will happen:) But Remember: "Nothing goes up forever"! :) Even if Lend has to go up, I personally believe that we may see a retracement/correction before going up again... So, my advice: Stay safe!

Some of the other coins that I feel are overvalued: 1) COMP (covered in a post before) 2) SXP 3) ERD 4) BAL 5) SYS
(At least a major correction needed in these coins before going up)

As of now, I feel interest will shift to BTC, as it has been trading sideways for quite a long time, and there is also a Symmetric triangle pattern, with volatility at a very low point, and some other factors, which is why we may see a major breakout soon, as posted here!

If you liked the article, consider sharing this with your friends and circles, and also spare an upvote for me,so that I get motivated to keep sharing market insights and analysis:)

Want to create an account on Hive to get some money for curation/content creation? Feel free to get onboard!

Posted Using LeoFinance