How Will AAVE's CRV Reduction Attempt Affect Its Price?

The AAVE cryptocurrency is built on the Ethereum blockchain and supports ERC20 standards. The project launched its ICO for the first time in September 2020. Aave (LEND) was upgraded to Aave (AAVE) in 2020 to improve its features and capabilities.

The crypto has faced a substantial short liquidation against a long liquidation of $7.92K. It is a bullish sign for the coin. Despite the liquidation of coins, the market cap has declined by 0.72% in the last 24 hours. The volume has declined by 10.00%, resulting in a 0.71% price decline.

The AAVE coin also has a TVL of $4.606B, following a market cap/TVL ratio of 0.20023. This coin’s current circulation in the crypto market is 90.92% of its total supply. AAVE token’s price made an all-time high price of $661.69 in May 2021. The coin is currently down by 90.45% from its high price.

AAVE Token Price Technical Analysis

How Will AAVE's CRV Reduction Attempt Affect Its Price? — Source: Tradingview : AAVEUSD : COINBASE

The AAVE coin has declined from the higher levels. This price decline has formed a descending triangle, and the price trades inside the same. The share price might break on the upper side as it forms bullish candlesticks.

The crypto is trading below the EMAs due to a massive price decline. The RSI is also acting uncertain to bearish.

AAVE Derivative Volume Analysis

AAVE coin has not had a significant volume activity or liquidation for a long time. That shows the need for more interest from traders in the crypto. If there is any spike in the coin’s volume in the future, it can lead to good momentum in the coin’s price.

Conclusion

Despite AAVE’s attempt to reduce its protocol exposure from Curve DAO, there is no significant activity in the AAVE community. The token price trades in an uncertain range, consolidating inside a triangle pattern. The EMA and the RSI are bearish.

Therefore, if the price of the AAVE crypto fails to break above the triangle pattern, it may continue to decline to lower levels.

Technical Levels

Support levels for the AAVE Coin are: $0.400 and $0.350
Resistance levels for the AAVE Coin are: $0.6230 and $0.8910

Disclaimer

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