Having risen in price by more than 6000% in less than six months, Aave (LEND) embarks on a protracted correction.
After a sharp fall, DFI.Money (YFII) has broken through the line of downward resistance and is now moving towards the nearest short-term resistance.
Since the beginning of March, LEND has shown an almost parabolic rally, which sent prices to a record high of $0.90 on 26 August. In total, for 168 days, the altcoin has risen in price by 6361%.
Cryptocurrency trader @altcoinsherpa tweeted the LEND chart, noting that the coin is still correcting but may soon resume its rally after falling to the $0.035 level.
The picture on the daily charts speaks in favor of such a scenario. The price briefly deviated from the $0.5 level, after which it recovered, but the upward momentum is very restrained. Technical indicators do not suggest a reversal – the stochastic RSI is falling, and the RSI itself met resistance at around 50.
So, after a potential rise in the direction of the 0.5% Fibonacci retracement level relative to the bullish move to $0.66, we should expect a pullback to long-term support in the $0.35 area.
YFI showed a similar meteoric rise, hitting a high of $9,954 on September 1. Since then, the price has been falling, having fallen in price by 65%.
At the same time, the altcoin successfully broke through two lines of downward resistance, which eventually acquired the status of support levels. This is a bullish signal that suggests an upward momentum is developing.
Upon closer analysis, it can be noted that the cryptocurrency is trading in a range limited by support and resistance at $3,100 and $4,000, respectively. In case of loss of support, the quotes are likely to head to new record lows.
That being said, technical indicators paint a favorable picture. Stochastic RSI has formed a bullish crossover and the RSI itself is above the 50 level, while the MACD is rising.
Thus, the probability of price movement in the direction of the $4000 resistance is higher than the risk of a fall.