LEND Price Analysis: Steady Growth on LEND/USD to Record High at $0.78 Following Aave (LEND) Receipt of UK FCA Approval

As the cryptocurrency market awaits the return of the King coin BTC beyond the $12k threshold, the DeFi space is booming with the rise of Aave (LEND) to a new all-time high. Aave is a small-cap crypto asset that allows depositors to generate interest by contributing liquidity to lending pools. Although Aave’s fundamentals may be strong, LEND is pulling back with the rest of the crypto market. Aave (LEND) is approx. up over 260% year-to-date according to CoinMarketCap. Aave is quickly capturing market share in DeFi as investors support steady growth on LEND/USD to record high at $0.78. At the time of writing, LEND is changing hands at $0.701, after retreating to $0.642 intraday low. Aave (LEND) has received an Electronic Money Institution approval by the UK’s FCA. It is the third crypto business to receive the license and the first-ever DeFi project to do so globally. The approval will support the blockchain startup, onboard new users, as well as provide key payment services.

*At the time of writing, LEND is changing hands at $0.700, after retreating to $0.642 intraday low
*Aave is quickly capturing market share in DeFi as investors support steady growth on LEND/USD to record high at $0.78
*Aave (LEND) has received an Electronic Money Institution approval by the UK’s FCA

Key Levels
Resistance Levels: $1.00, $0.90, $0.80
Support Levels: $0.60, $0.50, $0.40

LEND/USD Daily Chart: Bullish

LEND/USD Daily Chart

While the long-term picture remains positive, LEND retreated from the recent high and slightly breached the immediate horizontal support line at $0.65. The downside correction may be extended towards the bullish convergence zone at a $0.60 level before new buyers pop in. If the above-said support gives way, the lower boundary of the previous consolidation channel of $0.50 will come into focus.

On the upside, a recovery above $0.75 is needed to improve the medium-term technical picture and bring the recent high of $0.786 into focus. The price is still trending far above the MA 50, while the relative strength index (RSI) is hovering in the overbought zone. Both these indicators show that LEND/USD is presently overvalued and may soon face bearish correction. There are two healthy support levels at $0.50 and $0.60.

LEND/USD 4-Hour Chart: Bullish

LEND/USD 4-Hour Chart

After a recent downside retreat, LEND/USD bulls stayed in control of the market in the short term frame as the price went up from low at $0.646 to $0.743 at the hour of this post. A spike in the buying pressure behind Aave LEND may help validate the optimistic outlook presented by the 4 hours ascending MA 50 take off setup. But on its way up, the DeFi Altcoin could find stiff resistance between $0.75 and $0.80 in the short term.

The LEND/USD pair still has the potential to drop towards the $0.60 level close to the MA 50 before the bullish short-term trend resumes. The LEND/USD pair is only bullish while trading above the $0.60 level, key resistance is found at the $0.75 and the $0.80 levels. If the LEND/USD pair trades below the $0.65, sellers may test the $0.60 and $0.50 support levels.

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