Over the last week, the value of AAVE has plunged against the U.S. dollar and Ethereum, but it seems to have found a steady support level.
While AAVE has not witnessed the same favorable price activity like many other assets this year, it has seen some of the most recent price increases. Nonetheless, the DeFi token looks to have struck a demand ceiling, which may signal the beginning of a recovery.
DeFi Tokens Helps AAVE Get Traction
Aave might be getting ready to follow the trend of other assets in the market that is going up.
Some mid-cap tokens, like Avalanche’s AVAX, Loopring’s LRC, and Curve’s CRV, have risen more than 20% over the last week, even though the two most popular cryptocurrencies, Bitcoin and Ethereum, both fell against the dollar. Avalanche hit a new high of $144.96 on Sunday.
According to data from DeFi Pulse, there has been a 7% drop in the total value of bitcoin. The sudden rise in prices shows that people are becoming more interested in the new part of the market.
Some DeFi projects, like Aave, haven’t seen their prices rise as quickly as other projects. It has lost almost 10% against the dollar this week and even more against ETH. Ethereum has done better than DeFi tokens like AAVE this year.
AAVE has been through eleven months of consolidation. Since the start of the year, it hasn’t given us a clear picture of where it will go next. It has made a lot of lower highs and higher lows.
AAVE’s move toward the pattern’s apex means that a spike in volatility is about to happen. Depending on how far apart the triangle’s two most prominent points are, prices can change by up to 82%. To reach its all-time high of about $667, AAVE must first close daily candles above the $330 level.
However, if there are signs of weakness around the $237 support level, the bullish outlook could be thrown out, and a 22% correction could happen.
There’s also been a significant drop in the AAVE/ETH trading pair since early February.
AAVE could rise to 0.075 ETH if more people want to buy at the current prices. Breaking through this resistance level might make it to 0.12 ETH if there is enough of a rise in the price of DeFi.
Conclusion
At this writing, many mid-cap coins are beating the two largest cryptocurrencies by a significant margin. While the AAVE has incurred significant losses this year, the company has attempted to gain momentum throughout the year with little success.
According to the company’s technical signs, it seems that the stock is ready for a positive move shortly.
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