The price of Aave drops; Can it cross the $100 mark again?

0

AAVE is the most popular decentralized finance and lending protocol that allows users to borrow and lend cryptocurrencies by paying interest rates. AAVE is the native part of the AAVE protocol. Unlike many other crypto networks, investing in AAVE means buying shares of this AAVE technology company.

It is a leading decentralized finance protocol that will replace banks and other financial institutions in the future. It is an open-source protocol based on the ETH blockchain, where users can deposit cryptos in a pool and lend them to someone else in exchange for interest rates. However, borrowers need to store a decent amount of AAVE coins to borrow the amount. No intermediary or bank manages it; instead, it is managed by smart contracts. The algorithm handles all transactions securely.

The initial version was launched in 2017 and was known as ETHLend. It was created as a P2P lending protocol where users can lend/borrow cryptos by posting related requests. It later faced liquidity and loan application matching issues, so it switched to peer-to-smart contract models and rebranded as AAVE in 2019. The latest version was released in 2020.

At the time of writing, AAVE was trading around $73.24, which regained the $70 support after breaking it on October 13, but it is now consolidating between $81 and $71. Candlesticks form in the lower Bollinger Bands, and MACD and RSI do not suggest an uptrend.

Most technical indicators suggest sideways movement in the short term, so now is a good time to invest in the short term with a target and stop loss. Click here to find the most appropriate buying and selling levels based on your investment objectives.

Aave price analysis

After hitting an all-time high of $666.86, AAVE has been trending lower. The candlesticks have been trading in the lower range of the Bollinger Bands for the past year, so we don’t think this is the ideal time for long-term investing as the price of Aave could break the $70 long-term support. or consolidate in a range.

If the price breaks the support, the next level of support will be around $50, so you can consider buying at this level. Before that, you can add it to your watchlist for a short-term investment with a strict stop loss.

Share.

Comments are closed.