Three Signs the Explosive LEND Crypto Trend Could Come To An End | NewsBTC


The DeFi craze is showing no signs of cooling off, and each week a new crypto token is on fire as a result. The industry’s hottest token currently, is LEND, a DeFi protocol for lending and borrowing crypto assets.

The altcoin is up over 3000% in 2020 alone, but there are at least three major signs that the current explosive LEND trend is about to end.

How To Get Free Crypto  

DeFi Hype Helps Yet Another Token Climb To Super Stardom

The DeFi hype train is taking investors for quite a ride. Each passing week, another token is stealing the limelight and experiencing soaring gains.

14 BTC & 95,000 Free Spins for every player, only in mBitcasino’s Exotic Crypto Paradise! Play Now!

Recently, the DeFi token Compound was flooding everyone’s Twitter feeds, but this week, its a cryptocurrency called Aave (LEND).

The LENDUSD price chart has been about at bullish as it gets. After falling over 99% from a high of 50 cents a token, a bottom was found at just a fraction of a penny.

Related Reading | What’s Fueling DeFi Token Compound’s Powerful 20% Intraday Rally

1xBit: anonymous betting, the best odds & a generous 7 BTC Welcome Bonus! NEWXBIT promo code to get a 125% 1st deposit bonus now!

But since the bottom was set in mid-2019, LEND has gone on an explosive over 10,000% rally. Gains like this were common during the crypto hype bubble, but it’s been years since crypto assets moved like this.

It’s primarily driven by the incredible hype currently surrounding the decentralized finance industry. DeFi tokens have been all the rage, not only bringing investors gains through their investments but through other methods.

Coinbase Banner  

Some DeFi tokens, such as LEND, allow users to lend and borrow cryptocurrency assets and earn a yield. The added return on investment has made these protocols especially attractive, and their tokens have been crypto industry top performers.

Three Signs That The LEND Trend Could See a Strong Short-Term Correction

But all good things must come to an end, and all uptrends eventually correct and cool off. That may be what’s about to happen in LENDUSD, according to key technical analysis indicators.

On weekly timeframes, there is a massive bearish divergence on the LENDUSD Relative Strength Index. The previous example of a bearish divergence resulted in an over 70% crash.

Relative Strength Index Bearish Divergence | Source: TradingView

Next, the weekly MACD shows extremely overbought conditions, represented by a divergence of the two moving averages.

FreeBitcoin Banner  

MACD Overbought on Weekly | Source: TradingView

Lastly, the weekly Average Directional Index reading shows an almost non-existence of bearish pressure, to the point where reversals in the past occurred. The ADX itself is also showing an incredibly strong trend reading of over 80.

Average Directional Index and Directional Movement Index | Source: TradingView

And while the tool does suggest the trend is about as strong as it gets, it is at these levels when trends usually fizzle out and begin to reverse.

Related Reading | Fund Manager: DeFi Will Propel Ethereum To $1 Trillion Market Cap

Of course, all of these signals could very well be wrong, and both the value of LEND and the DeFi trend could prove to be too bullish for any bearish signals to confirm.

Bullish Cup and Handle Continuation | Source: TradingView

However, currently, charts are pointing to at least a short-term pullback. Any short-lived pullbacks in LENDUSD could bring the asset back to support, before resuming the current trend.

If this happens, a bullish cup and handle chart pattern could form on the trading pair. This is usually a bullish continuation pattern, so even these bearish signs in the short-term could lead to long-term gains in the end.

Go to Source
Author: Tony Spilotro


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.