- The developers of Aave announced the acquisition of Sonar.
- The token price continued to decline and remained unprofitable.
- The trading volume went down by more than 26% amounting to $42.825 million.
Aave Companies, the developers of the DeFi protocol Aave and Lens Protocol, a decentralized social network, announced the acquisition of the web3 social gaming application Sonar on 5th December. This could be one of the strategic plans of Aave to make token prices surge and break the deadlock. However, after the news surfaced, token recorded a drought of whales, and only 9 whale transactions exceeded $100,000. Also, its active addresses and new demand dropped drastically.
GM frens – Aave Companies has Acquired @Sonar
"We are thrilled the Sonar team is joining our Lens team to accelerate our social media and mobile app strategy” –@StaniKulechov (Stani.lens)
Read more
https://t.co/uVU6VlZC0U
— Aave (@AaveAave) December 5, 2022
Users ghosting AAVE
AAVE’s price forms a falling parallel channel with diminishing volumes and almost no whale transactions. Holders of AAVE have been low on profit for the last month. Also, MVRV posted a negative value, which showed that sell-offs at the current price would only result in losses. Due to the pattern being formed, the price has penetrated the 20-EMA and can soon reclaim the 50-EMA. If the plan works and the prices rise, it may aim for a level near $115.
The CMF indicator indicates an uptrend but slightly slopes down, which may be a halt before resurgence. The MACD indicator diverges for the future bulls expected to come after the news release. The RSI indicator currently stays at the neutral level near the 50 range.
In the recent hours
AAVE token keeps consolidating to prepare for the surge. The MACD tangles and goes neutral to undergo bullish divergence in the near term. The RSI indicator still floats near the neutral range but does not reach the lower ranges. The CMF indicator goes flat near the baseline and prepares to take support from here and mark an uptrend.
Conclusion
The new news release may bring laurels to the token holders as it indicated a price surge but could not attract the whale in the meantime. It may face a positive reaction in the future, but it’s comparatively cold now. If everything goes according to the plan, future price actions will be worth waiting for.
Technical levels
Support levels: $54.5 and $31.5
Resistance levels: $97.5 and $115.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Source: https://www.thecoinrepublic.com/2022/12/07/aaves-witty-plan-to-rise-in-near-term-prices-may-rise-due-to/