The AAVE price, like most cryptocurrencies, tanked on Feb 22 and 23, only to steady in the early Asian session.
Overly, the uptrend remains. Nonetheless, there are concerns that a further market calibration could unwind gains made in the last few months, ushering in another wave of price discovery southwards.
As of Feb 24, the AAVE price is stable, recovering after the plunge of early this week. The token is up eight percent, outperforming both ETH and BTC in the same period.
Technically, AAVE prices may print higher, defy gravity, and affirming bulls’ convictions.
AAVE trading volumes are also neutral, adding roughly two percent on the last day. During this time, $1.5 billion of AAVE tokens changed hands across different exchanges, highlighting the token’s liquidity and the level of demand in lower time frames.
AAVE Price Overview
The AAVE price is in an uptrend. Although down 10 percent week-to-date, the AAVE/USD price is up 30 percent in the last month, reacting from the lower BB–one of the leading cryptocurrency trading indicators.
For traders, every low could be a launching pad with targets at 2021 highs of around $584. A lot depends on how well users adopt the project and the number of partnerships it strikes.
Earlier on, Aave said they would revamp its code and move to Layer-2 to lower Gas fees and enhance user experience. This feeds to AAVE bulls, which in turn may force prices higher.
In the immediate term, Jan 2021 highs and Feb 23 lows of around $300 provide support. Accordingly, how AAVE/USDT prices react inside Feb 23 bars could determine the short-term trajectory. Losses below $300 affirm sellers of early this week, building a case for a free-fall below $200.
Conversely, rejuvenating surges above $450—Feb 22 bear bar could see prices tear higher towards $600 in a bull trend continuation pattern.
AAVE Market Movers
At this TVL, the dApp only trails MakerDAO, which enjoys a first-mover advantage, locking $6.27 billion on the last day.
Within AAVE’s liquidity pools, the top assets are LINK, WBTC, ETH, and AAVE:
It's time for Aave Weekly 2021W8 👻@AaveAave closes at $5.2 billion for the first time 🌈
— ⍺ALΞX ₿erto G (@A_BertoG) February 23, 2021
The protocol has also announced the Aave-Balancer Asset Manager, allowing idle assets to earn yields on Aave V2 without increased gas costs:
Excited to announce that the Aave-Balancer Asset Manager will be the first asset manager on @BalancerLabs v2, enabling idle assets to earn yield on Aave 🔥
Learn all about it 👇 https://t.co/CgYBw2ROXN
— Aave (@AaveAave) February 23, 2021
With the rise of NFTs, AAVE through Aavegotchi will likely rise. The protocol plans to launch in the coming weeks after shifting to the Polygon Network.
AAVE Price Prediction
Despite weakness in the last two days, the AAVE uptrend is firm.
The last two days’ correction saw the AAVE/USDT price fall to the 50 percent Fibonacci retracement level of the Dec 2020 and Feb 2021 trade range. It coincides with Jan 2021 highs, meaning the correction was a retest, a launchpad for possible higher highs in months ahead.
Accompanying the downtrend were relatively lighter trading volumes. From volumes analysis, bulls are still intact. Note that prices range inside the H2 Feb 2021 trade range, a net positive from an Effort versus Results point of view.
Losses below $300—Jan 2021 highs may see AAVE/USDT plunge to $150.
On the other hand, a recovery above $450—the 23.6 Fibonacci retracement, with higher volumes—exceeding recent averages, may pump AAVE prices to $584—or even $600 in a buy trend continuation pattern.
Chart courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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