Aave’s LEND Token Dips 27% after Rising 10X; is More Pain Ahead?

LEND, the native token of Aave’s non-custodial protocol surged by more than 1,000 percent in just three months. The parabolic rally helped the cryptocurrency establishing an all-time high at $0.384 earlier this week. Nevertheless, the top formation resulted in profit-taking among daytraders, sending the LEND price lower by 27 percent. A Santiment report warned about an extended bearish move based on the growing divergence between the LEND price and its number of active addresses. LEND suffered its most significant decline in nearly three weeks, after rallying by more than 1,000 percent since April 2020. The uptick in the Aave protocol’s native token came amid a booming craze for decentralized finance projects, aka DeFi. Aave enables LEND users to earn interest in deposits and borrow assets with a stable or variable interest rate. The protocol also offers ultra-short duration, uncollateralized flash loans. Meanwhile, LEND also surged on a growing number of…

Read the original article here