Connect with us

Price Analysis

AAVE Price Roaring, are AAVE/USDT Bulls Aiming at $800?

Published

on

Aave crypto price analysis
Share this post

AAVE and the Synthetix token are neck-to-neck as joint-top performers in the top-20 by market cap.

Specifically, the AAVE token is at a new all-time high, mirroring ETH’s with more headroom in days ahead judging from technical candlestick arrangement and fundamentals.

As of writing on Feb 5, the AAVE price is up 14 percent versus the greenback on the last day, adding 62 percent week-to-date.

Notably, the token has also added double-digits versus ETH and BTC week-to-date, revealing AAVE bulls’ strength in the past week.

Accompanying the upsurge are bullish volumes.

On the last day, the average AAVE daily trading volumes rose 13 percent to $2.5 billion from the 5.13 million AAVE tokens traded.

AAVE Price Overview

From the daily chart, AAVE price gains are near perpendicular.

For perspective, the AAVE is up 319 percent against the greenback month-to-date, more than tripling versus BTC and posting significant gains against ETH—which is trading at around a new all-time high.

Notably, the underlying bullish momentum is high as AAVE bull bars are banding along the upper BB. At the same time, there is decent volatility judging from the widening BBs.

The immediate support levels are at Feb 3 bar high at around $400 and the middle BB—the 20-day moving average.

Possible resistance levels based on Dec 2020 to Jan 2021 trade range stand at $500 and $800. These two are the 1.618 and 2.618 Fibonacci extension levels.

As such, a firm close above $500 with increasing volumes accompanying the break higher could lift the governance token to most likely $800 in the medium term.

Technically—for aggressive traders, dips in lower time frames may provide an opportunity for a ramp-up (accumulation) with targets at $800 or better.

AAVE Market Movers

For starters, AAVE is a non-custodial lending protocol that popularized the use of flash loans. That is, users can lend out a variety of digital assets and receive a decent interest. At the same time, borrowers can receive loans without filing paperwork.

Smart contracts govern the system without intermediaries.

Analysts are confident in the token’s prospects:

The fifth public audit of the AAVE smart contracts was done and completed by Sigma Prime.

AAVE is now part of the Bitwise 10 Large Cap Crypto Index.

The AAVE Safety Module that protects users against shortfalls now stands at over $1 billion.

Grayscale Investments, one of the largest crypto funds facilitating institutional exposure to digital assets, recently registered a new AAVE trust.

 

AAVE Price Prediction

AAVE Price Roaring, are AAVE/USDT Bulls Aiming at $800?

The path of least resistance for the AAVE/USDT pair is upwards. Gains have been near perpendicular in the last few months, albeit temporary stasis in late January 2021.

With increasing volumes and high momentum, traders may be able to buy the dips in lower time frames. The immediate resistance is $500. A firm break above this liquidation level could provide the momentum for higher highs towards $800—the 2.618 Fibonacci extension level.

On the lower end, the support is at $400, and the middle BB, assuming there is a contraction from spot level. If losses are with high trading volumes, it may slow down buyers, effectively nullifying the uptrend.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

cryptotelegram-telegram-banner

Trending