The cryptocurrency market witnessed a surge in selling pressure during the U.S. trading session on Tuesday. As Bitcoin shows sustainability below $60000, the majority of major altcoins, including AAVE, are showing signs of continuing their correction trend into September. With an intraday loss of 8%, the AAVE price liked to challenge $118 support for a potential breakout.
AAVE Price Slips Despite Sky Aave Force Initiative
Aave Labs, in collaboration with Sky (formerly MakerDAO), introduced a new initiative designed to turbocharge decentralized finance (DeFi) by bridging the gap between DeFi and traditional finance (TradFi). Spearheaded by Aave network founder Stani Kulechov and MakerDAO co-founder Rune Christensen, the project aims to drive mass adoption and enhance the resilience of the DeFi ecosystem.
Kulechov recently shared his view on DeFi, saying,
DeFi protocols have matured, showing resilience and market fit. By working together, DeFi can become the backbone of all finance, enabling unprecedented access and propelling new use cases.
We are no longer building on the sidelines; DeFi can empower all of finance.
The Sky Aave Force Initiative will propose the integration of USDS and Savings USDS (sUSDS) on Aave V3, which will offer native token rewards. Moreover, AAVE will launch a new marketplace to ensure seamless interactions and provide exclusive rewards for users.2
Turbocharging DeFi: Introducing Sky Aave Force pic.twitter.com/foY4LqQj6j
— Aave Labs (@aave) September 3, 2024
Despite the announcement, the AAVE price plunged 9.3% to $122 on Monday, indicating the integration could drive a long-term value to these assets rather than immediate effect.
Data from the santiment shows the AAVE supply on exchange has declined since mid-June, currently recorded at 3.08 Million coins. This indicates the investors are withdrawing the AAVE coin from the exchanges, suggesting a shift from selling to holding strategies.
AAVE Price Holds Key Fibonacci Support
In the last two weeks, the AAVE price showcases a notable correction from $148.7 to $117.8 support, registering a loss of 20%. A bearish reversal to the 38.2% Fibonacci retracement level indicates a health correction for buyers to regain strength.
Sustaining this support will drive the AAVE price up 23% to challenge the $150 resistance.
However, a breakdown below the $117.8 support will accelerate the selling pressure and drive an extended downfall to $100.
Frequently Asked Questions (FAQs)
AAVE’s price has faced a 9.3% drop despite the introduction of the Sky Aave Force initiative, signaling a potential continuation of its correction trend
The AAVE supply on exchanges has declined since mid-June, currently recorded at 3.08 million coins.
If AAVE breaks below the $117.8 support, it could lead to increased selling pressure and potentially drive the price down to $100.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/will-aave-price-150-sky-aave-force-initiative/
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