AAVE Price Prediction: AAVE Near The Support Zone, Is A Rally Near?

• AAVE has seen a decline in the unique users and monthly deposit volume
• Technical indicators of AAVE favor the consolidated trend. AAVE/ETH pair has seen a drop of 0.75% in the intraday session

AAVE is a decentralized finance protocol that operates on the Ethereum blockchain. It allows users to lend and borrow cryptocurrencies without the need for intermediaries. The protocol utilizes smart contracts to enable peer-to-peer lending and borrowing. The interest rates are determined by the supply and demand of the particular assets. AAVE protocol also uses flash loans which allow users to borrow large amounts of crypto without the need for collateral. It has opened new possibilities for traders and arbitragers to take advantage of market inefficiencies. AAVE cumulative interest paid has remained stagnant in the past few days. AAVE has also observed a decline in users and the total monthly deposit volume. The cumulative earnings of the protocol is also observing a consolidated trend in price. As per the Defilama TVL of AAVE V3 has been in an upside trend and can see a new high in the future.

AAVE has a market cap of $1.02 Billion and is ranked 48th in the crypto-verse. The volume of the asset has seen a decline of 11% in the intraday session. The volume-to-market cap ratio of AAVE suggests a consolidated trend in price.

Is AAVE Ready For $100?

The weekly technical chart of AAVE suggests a tussle between the Bulls and Bears. It has been moving inside a support zone. The asset price is currently near the value of $71 with a drop of 1.23% in the intraday session. The upside trend of AAVE can see a halt near the value of $85.Meanwhile, the support of the asset price can be observed near $65. The asset price is currently trading below the 50 and 100 Daily Moving Averages. They can act as a resistance for the asset price in case of an upside trend. If the asset price gives a positive crossover then a strong upside momentum can be seen.

The RSI of AAVE is near 45 suggesting its presence in the neutral zone, There is no slope in the indicator hinting towards a consolidated trend in price.

Summary

AAVE has been observing a decline in monthly users and deposit volume. AAVE is currently in a consolidated trend but can move to a new high in the future.

Technical Levels

Major Support:$65

Major Resistance:$85

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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