Let's talk about AAVE.
The reason this coin is surging now is because, as we mentioned before, its TVL (Total Value Locked) has far exceeded the peak of the last bull market, while its price is only in the 300s, much lower than the last bull market peak of 670, indicating it is undervalued.
Moreover, the Trump family's WLFI has also increased its position in AAVE, which we specifically analyzed in two episodes, so I am not surprised by its rise.
But what I want to say today is that its short-term rise seems to be roughly over, having reached the previous high of 390 today, which presents significant resistance, so it might be a good idea to take profits on the highs and wait for a pullback to re-enter.
I will keep an eye on support levels above 350, such as 355, to enter again at lower prices.
Actually, whenever the market is good, I would choose to continue holding, but now various coins have plummeted quite a bit, and AAVE is about to challenge this year's previous high again. It feels like the overall environment is a bit weak, and I would prefer to wait for a retracement.
Additionally, I have also invested in the other two ecosystem coins of Ethereum, Uni and Puffer, which are currently slightly up, not as aggressively as AAVE, but still acceptable.