Connect with us

Price Analysis

AAVE Price Steady After Bancor Support, Will $70 Hold?



Aave crypto price analysis

The AAVE price is now bouncing back after days of consolidating. After yesterday’s gains, the token is reversing from key support levels with increasing participation pointing to demand in lower time-frames.

Although the uptrend is firm despite minor bumps, every low, for aggressive traders, is a loading opportunity as long as prices are trading above the main support trend line (Binance data).

The two-month support line has been shoring prices, soaking sell pressure, and providing a launching pad for bulls aiming to retest recent highs.

As of today (Dec 29), AAVE prices are stable on the last day, leveling up losses in the last week of trading, according to data streams from Coingecko.

AAVE Price Overview

Overly, the AAVE price remains in range mode versus the USD.

The AAVE/USD is constrained within a $25 range with lows at $70 and resistance between $90 and $95. The upper end is capped by the triple-bar bear reversal pattern whose high is marked by Dec 19.

On the lower end, the main two-month support trend line has been reliable for buyers. As evidenced by the reaction of prices on Dec 23, the reversal of prices from the line continues to prop bulls.

In the medium term, a clearer trajectory will be carved only once there is a clear breakout. A close above $95 might trigger buyers aiming for $135. It is the 1.168 percent Fibonacci extension level of the two-month trade range.

Conversely, a dip below the main support trend line is enough to trigger a sell-off to $50.

AAVE Market Movers

The success of DeFi translates to more positivity for bulls.

The protocol is one of the leading lending protocols, dominant, with $1.64 billion under management, according to Defi Pulse.

After months of development, the team unveiled Aave v2. Specifically, the user interface was revamped.

Although navigation was easier in v1, the introduction of additional features such as staking, governance, yields, and collateral swaps, and others necessitated changes accommodating new features. Notably, in the new upgrade, there is better visibility for the AAVE governance token balance.

From the liquidity end, the AAVE governance token has been selected as the next token to receive BNT liquidity mining in Bancor 2.1 that supports single-sided liquidity.

Once the AAVE pool receives $400k in staking liquidity, the protocol will activate weekly BNT rewards and one million BNT of impermanent loss insurance.

AAVE Price Prediction

AAVE Price Steady after Bancor Support, will $70 hold?

From the char, the AAVE price is stable on the last day.

Aforementioned, the AAVE price is ranging inside a $25 zone with caps at $70 and $95, respectively.

The two-month support trend line is the immediate support level. A close below $70 may trigger a dump back to $50.

On the flip side, a rally past $95 will confirm the current consolidation as an accumulation. It shall subsequently pave room for further gains towards $135. It is the 1.168 percent Fibonacci extension level of the Nov to December trade range.

In the immediate term, the Dec 23 bear bar’s trade range provides support and resistance levels. A rally above its high at $85 could be the impetus for $95.

Conversely, a dump below $70 and $60 with high trading volumes may spark a sell-off as aforementioned back to $50 in a correction.

Chart Courtesy of Trading View

Disclaimer: Opinions are those of the author, and are not financial advice. Do your research.

Passionate about Blockchain, Crypto, Blockchain, and Bitcoin. Excited of what lies ahead. Advocating adoption. HODLer!