Aave crypto is trying to give a breakout from falling trendline and it could be beneficial for buying in the short term.
With Bitcoin nearing $50k levels, there is cheer in the crypto industry, which is helping the buying sentiments towards other cryptos.
In this article, we will look at the price prediction along with the weekly analysis and future outlook.
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Table of Contents
Aave Price Prediction
AAVE is currently trading at $89.08. AAVE has been on a strong uptrend since the beginning of the year, reaching high of $97.84 on 6 Feb 2024.
Let’s have a look at the chart below for trend analysis:
The price has broken the resistance trendline. After a successful retest, it can go upward.
Weekly Price Analysis
Looking at the weekly chart, it has been in a bullish channel since mid-January 2024, forming higher highs and higher lows. The crypto broke above the previous resistance level of $85 USD on 5 Feb 2024, and tested the psychological level of $100 USD on 6 Feb 2024. However, it faced some selling pressure at this level and retraced to the support zone of $85-$90 USD, where it is currently consolidating.
The chart indicators are still bullish . The RSI is above 50, but not in the overbought territory, suggesting that there is still room for growth. The volume is also high, confirming the validity of the uptrend.
Future Outlook
The protocol continues to innovate and attract more users and liquidity. It recently announced the launch of Aave Pro, a permissioned liquidity pool for institutional investors, in partnership with Fireblocks, a digital asset custody platform.
Another factor that could boost AAVE’s price is the upcoming launch of Stablecoin GHO, a decentralized stablecoin pegged to the US dollar. GHO was launched in July 2023, but it has been trading below the peg for over six months, due to low liquidity and demand.
Conclusion
Aave is one of the most successful and innovative DeFi protocols in the crypto space, offering a wide range of lending and borrowing services to its users.
It’s price is supported by solid fundamentals, such as the growing TVL, the launch of Aave Pro and Aave Stablecoin GHO, and the positive news coverage. The crypto is likely to continue its bullish momentum in the near future, as the protocol expands its user base and product offerings.
AAVE is a good investment for long-term holders, as it has the potential to reach new heights in the coming years.
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