Let's talk about AAVE. The reason this coin is skyrocketing 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 holdings in AAVE, which we analyzed in two dedicated episodes, so I am not surprised by its rise.
However, what I want to say today is that its short-term rise seems to be leveling off; it has already reached the previous high of 390 today, which presents significant resistance, so it may be a good idea to take profits at this high point and wait for a pullback. I will keep an eye on support levels above 350, such as 355, to re-enter on dips. In fact, whenever the market is doing well, I usually choose to continue holding, but now with many coins plummeting, AAVE is about to challenge this year's previous high again. It feels like the overall environment is a bit unfavorable, and I want to wait for a pullback.
Additionally, I have also invested in two other ecosystem coins of Ethereum, Uni and Puffer. They are currently experiencing a slight increase, but not as aggressively as AAVE, which is still acceptable.
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