AAVE price analysis: Chances of trend reversal

  • AAVE facing a Strong downtrend
  • Call for conclusions and predictions 
  • Chances for trend reversal 

Aave is a decentralized finance protocol that allows people to lend and borrow crypto. Lenders earn interest by depositing digital assets into specially created liquidity pools, borrowers can the use their crypto as collateral to take out a flash loan using this liquidity. Aave has several unique points when compared with competitors in an increasingly crowded market. During the DeFi craze in summer 2020, it was the biggest project in terms of the total value of crypto locked in its protocol.

In this article you will get to know about the technical analysis of AAVE, firstly analyzing the daily graph we can currently observe a strong downtrend and a downtrend in the short-term graph too, showing the strong bearish dominance over the AAVE price. While the 24 hrs trading volume is 21M with an increase of about 20.05%. The price stands at $116.44 with a loss of 9.76% over the  intraday trading session. The value for the BTC pair is 0.00354 with a loss of 5.65%  and the market cap is of 159M after a decrease of 10.14% and the volume market cap ratio has a value of 0.1305. The lowest price hit over the past 24 hrs was $115.15.

While analyzing the graph for  short term the price is still at a down trend while the relative strength index is indicating a oversold region, maybe this is the time for the bulls to get activate and make the price to  shoot up while the MACD indicator line last made a negative cross since then there are no signs of trend reversal in the market.

If the bull will not support the ecosystem of AAVE there are strong chances of degradation.

Conclusion 


This is a very good time for the investors to enter the market, while the ones who missed the peak to sell out their assets, they have to wait for the market to rise again. Investors believe there are many chances of the trend reversal as the relative strength index has indicated an oversold point.

Technical Level 

Resistance: $260

Support: $205, $155