After a substantial, over 675% two-month rally, the altcoin called Aave may finally about to be tamed. A parabolic curve the crypto asset has been following has now been breached, and as we’ve learned from the crypto bubble, a potential 80% or more correction is possible.
Is the powerful LEND trend ready to come to a bitter and abrupt end?
Aave DeFi Token Defies Gravity With Over 675% Two-Month Rally
DeFi tokens have been unstoppable lately, with a new finance-focused altcoin stealing the limelight each passing week. Since the start of June, however, it’s been all about Aave (LEND), a protocol aimed at providing interest for lending crypto assets.Aave took the spotlight from Compound, another DeFi token with similar goals, and has quickly gobbled up market share in total value locked up.
Related Reading | Be Wary Searching For The Next DeFi Star Warns Crypto Advisor
LENDUSDT has been in a steady, explosive uptrend over the last two months with barely any significant pullbacks of note. In less than two full months, the crypto altcoin grew by over 675%. In July alone, which is only three weeks in, Aave is up over 180%.
Aave LENDUSDT Daily Parabolic Curve | Source:
Break of Parabolic Trend Results In 80% Or More Correction, As Bitcoin Has Proven
And as crypto investors have time and time again learned the hard way, what goes up, must come down. Crypto assets come down even more violently than they rose, often resulting in over an 80% decline after parabola is broken.
Related Reading | Three Signs the Explosive LEND Crypto Trend Could Come To An End
It also would set the last two-month rally back nearly to the beginning, keeping only meager returns for early investors. Such a sizable drop would take the momentum out of the DeFi project that was once defying gravity with its enormous climb. It also could take a dent out of the DeFi bandwagon as a whole, which has recently come under scrutiny.Analysts warn that although there is real value being generated in the budding industry of decentralized finance, hunting for the next big DeFi project may prove dangerous.
