Aave Price Prediction: Price Consolidating Between Secondary Support and Resistance

Aave Overview:

Aave is a decentralized finance protocol that enables individuals to lend and borrow cryptocurrency. Lenders can get interest on their deposited digital assets through liquidity pools. On the other hand, borrowers can use their cryptocurrency as collateral to obtain a quick loan using liquidity. When it first debuted in November 2017 under the name ETHLend, Aave changed its name to Aave in September 2018.

Aave serves as a governance token that gives owners a say in the protocol’s future development and offers discounted fees on its platform to AAVE holders.

Aave Technical Analysis:

The AAVE/BTC pair saw a decrease of 0.25% intraday, with a trading value of 0.002824 BTC. However, AAVE token suffered a significant decline of 58.88% last year. With the market experiencing strong-selling pressure, AAVE token remained below its secondary support level of $67.37 at the end of 2022.

The token price has been dropping since the beginning of 2022, which suggests that sellers have been in control of the token since the year’s beginning. As soon as the token passed through its secondary barrier, the bulls got involved in the market and actively pushed the token upward. The coin was quickly pushed below its main resistance by selling and taking back the market from purchasers after it surpassed its 200-Day EMA. The token has been settling between its secondary support and resistance since. Because of the selling pressure, the token made its 52-week low on the last day of 2022.

According to Aave price predictions, the future of AAVE largely depends on the actions of buyers in the market. If the buyers are able to push the value of AAVE past its primary resistance level of $82.37, the token may experience a significant upward rally over the daily time-frame chart. This means that the price of AAVE could potentially rise in the near future if there is enough demand from buyers to drive the price upwards.

RSI is decreasing in the overbought zone and might show a negative crossover which indicates that the sellers are coming in the majority and pushing AAVE downwards. This suggests the strength of the current bearish trend. The current value of RSI is 55.28 which is above the average RSI value of 48.45.

The MACD and the signal line are decreasing but not showing a definitive crossover over the daily chart which can support the RSI claims. Investors need to watch every move over the charts during the day’s trading session.

Conclusion

Aave, a decentralized finance protocol, is currently trading at $78.50 with a slight intraday increase. AAVE token suffered a significant decline in the previous year but has been consolidating between its secondary support and resistance this year. If the buyers can push the value past its primary resistance, the token may experience a significant upward rally. RSI is decreasing in the overbought zone, indicating that the sellers are pushing AAVE downwards, while the MACD and the signal line are decreasing but not showing a definitive crossover. Investors should keep an eye on the charts during the day’s trading session.

Technical Levels

Support Levels: $82.37 and $90.74

Resistance Levels: $74.01 and $67.37

Disclaimer

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