The AAVE price is recoiling from November highs.
At the time of writing, the token is down 10 and 19 percent in the past 24 hours and week, respectively. However, at spot rates,it has more than doubled after sinking to Nov 2020 lows of $26.
AAVE Price Overview
The token’s performance has been dismal in the last week.
Aforementioned, it is down 19 percent in the last week of trading. For traders, there could be an opportunity to exit longs as prices approach critical support-previous-resistance level at around $60.
Overly, some determiners may either prop or spark the dump down to $60. One of them is the middle BB, the 20-day moving average, and the participation levels. Notably, the middle BB has been a reliable flexible support line as the token price expanded to its all-time high of $82 early this month.
As such, for traders, the $60 and $82 levels are vital in the medium term. A break below or above could spark a selloff or buy trend continuation to $50 or worse, or new 2020 highs.
AAVE Market Movers
Whether the Aave price rallies or not lies in the performance of the DeFi market. According to Defi Pulse, there is over $14 billion worth of assets under management.
Most of them are locked in Maker.
Even so, a tidy sum is also under Aave.
At $1.43, the protocol has more tokens locked than Uniswap ($1.2 billion) and Synthetix ($818 million), respectively.
Aave is a trustless lending protocol with fixed and stable interest rates for their clients. Through the protocol, users can lend and borrow digital assets without KYC and AML requirements.
After rebranding, the dApp is now one of the most active in DeFi.
On Nov 23, Aave said it would be investing in Pixelcraft Studios. It is a Singapore-based company developing an NFT game powered by the Aave protocol called Aavegotchi. Stani Kulechov, the CEO of Aave, said it was investing in the firm because it empowers NFT and DeFi, bring a new layer of composability in the Ethereum ecosystem.
Aave has also partnered with Axie Infinity, a game bearing some resemblance with Pokémon. Gamers can earn rewards, enhancing their experience.
The Benchmark Protocol also plans to launch a new liquidity mining program for AAVE/ETH pool on Uniswap. Liquidity providers will earn MARK.
1/Hey @AaveAave community, we'll be launching a liquidity mining program for the $AAVE/ $ETH pool on #Uniswap in the coming days where individual's can earn $Mark for providing liquidity. #AAVE @StaniKulechov
— Benchmark Protocol (@Benchmark_DeFi) November 18, 2020
AAVE Price Prediction
The AAVE price is down 10 percent on the last trading day.
Immediate support is the 20-day moving average (the middle BB), and $60. From the daily chart, the AAVE price is trading within a bullish breakout pattern. The upside is capped at $60. On the other hand, bears may force prices below $60 and the flexible support line.
Today’s bar had a long lower wick, $4 above the support level and at the middle BB. It may suggest accumulation and buy pressure in lower time frames. However, if AAVE prices close below spot rates, losses towards $60 and even $50 can’t be discounted. Bear targets lie at $50 and Oct 23 high of $42.
Conversely, a snap-back from resistance-turned-support with increasing volumes, preferably exceeding those of Nov 11 (data from Binance), could build the basis for $82 as the AAVE price resumes its rally.
From the Fibonacci extension, the first buy target stands at $120.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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