AAVE Indicating a Bull Run on Daily Charts!
If you haven’t heard of AAVE, there is a lot to learn. AAVE is a decentralized cryptocurrency lending and borrowing platform developing on the Ethereum blockchain. A decentralized network does away with the need for KYC, credit checks, or any other sort of document. The use of AAVE requires a customer to have access to the Web 3.0 wallet and internet connectivity to reap the benefits of AAVE. And, for more additional information, you can check out the Aave lending review.
It currently offers borrowing and lending operations for over 26 cryptocurrencies. Lenders earn interest over their lent amount, which is generated through the interest paid by the borrowers. The rate of borrowing and lending keeps varying depending on the demand of a particular crypto asset. Value of all rates keeps varying between under 1% to over 20% per annum, and the best part is the absence of any regulatory authority.
AAVE currently holds a liquidity pool of above 16 Billion USD in over 26 crypto combinations. After making a high of $707 on 18th May 2021, it touched a five-month low valuation of $165 before entering a new leg of bullish sentiment across all cryptocurrencies.
AAVE Technical Analysis
100 Day Moving Average – $367
200 Day Moving Average – $330
Support Level – $175
Resistance Level – $330 | $420
All time High – $550
Month High – $354
Month Low – $215
Aave’s attempt at revolutionizing lending and borrowing operations on cryptocurrency has taken the entire crypto potential to another dimension. We are currently on a crucial path to tackle the resistance placed at $420. On the other hand, we have major support active at $175 levels.
Since Aave has already moved by over 100% in just two weeks, there is a good scope of retracement. Hesitance at the current levels can be seen with upper wicks on each candle. Investors should become alert to buy at current levels as we can witness a clear consolidation of above 20 to 30% in days to come.
However, if one has a carry forward position from the recent crash, they should hold on to their gains as Aave has the potential to reclaim above $470 in a few days. The selling action is also backed by the small resistance posed by the 200 days moving average line, which seems to be an active hindrance in Aave’s path to reclaim the higher levels.
MACD is indicating no weakness in current price action and seems to be a strong bull run. However, the volume has significantly decreased as compared to the last few days. This could be a sign of investors being wary of the resistance at the 200 day moving average.
On hourly charts, the price action and increase in volume indicate the rise of a new swing that should close above $340 to continue the bullish sentiment. RSI also shows a value of 49 at the current trading value, but the decreasing volumes in the last few hours could be a sign of worry and prevent Aave from reaching a new high in the current swing as per our AAVE price prediction.
The latest Heikin Ashi candle would be an important indication for establishing the potential of Aave to reach a new high.
