Aave free-fall from $0.9 embraced support at $0.42, paving the way for recovery.
LEND is facing resistance at the 100 SMA as well as the descending channel.
The current bearish market did not spare any particular cryptocurrency; be it Bitcoin, major, minor, or altcoin. In the previous weeks, the decentralized finance tokens like Aave (LEND) rallied, sometimes for no apparent reason other than speculation.
For instance, Aave spiked incredibly from the levels traded on August 1, around $0.30 to highs close to $1.0 in the last week of the month. The same meteoric growth was posted by other DeFi protocols including Yearn.finance, Uniswap, and Curve Finance among others.
September has started in a different note, not just for Aave but for the entire cryptocurrency market. Bitcoin, for instance, is trading at $10,300 following a sharp drop from $12,000 (resistance) to support at $9,900). Aave has also been battered massively after hitting a wall at $0.9. The reversal that ensued following the barrier, has forced LEND below key levels including the 61.8% Fibonacci retracement level of the last drop from $0.9 to a low of $0.42, the 100 Simple Moving Average (SMA) including $0.5.
LEND/USD 4-hour chart
The price explored lower levels towards $0.4 but a monthly low was traded at $0.4270. A wider scope of the token in the 4-hour range shows the price falling within the confines of a descending channel.
Recovery from the dip has not been straight forward, especially with the resistance at the 100 SMA ($0.5710). The Relative Strength Index (RSI) also shows consolidation is likely to take precedence before any breakouts come into the picture. Note that, gains above the channel resistance would be a great boost to the price in helping to stage the journey towards $1.0.
Luke has had a long interest in financial technology, especially cryptocurrency and blockchain. With a Bachelors degree in Journalism and Media, Luke is dedicating his writing skills for the digital currency sphere.He can be contacted at email@example.com