• Aave (AAVE) is Struggling with a $420 Swing Resistance!

  • Aave and its predecessor LEND, the brainchild of Stani Kulechov, have been among the leading cryptocurrencies in the decentralized finance domain long before the term DeFi was coined in the blockchain market. AAVE is a significant cryptocurrency in the Defi space, with a focus on developing transparent peer-to-peer lending and borrowing crypto networks.

    Unlike traditional finance systems, AAVE does not require registration or even the Know Your Customer service. To deposit, borrow, stake, or swap on the Decentralized Finance market, simply connect your wallet. Because it was created on the Ethereum network, all transactions are automatically registered on the ETH blockchain using smart contracts.

    Borrowing is done through lending pools formed from the deposits of a large number of lenders. Each lending pool has server funds as a hedge against impending volatility. Each depositor receives a reward for contributing liquidity to the lending pools. Depositors profit from a percentage of flash loan fees and interest generated by other borrowers’ borrowed funds.

    Aave gives all of its borrowers the option of selecting their interest rate method from Fixed, Variable, or Floating. AAVE has become the new favorite of the crypto world due to the fact that it performs all of the processes without the need for an intermediary, bank, restriction, or regulations.

    AAVE is currently ranked 34th in terms of market capitalization, with a market capitalization of USD 5 billion and a total circulating valuation of 13.177 million coins. The rapid rate at which it is setting new highs and dominating the DeFi marketplace is why an increasing number of people are interested in owning this native cryptocurrency. There are only 16 million coins available in total.

    Analysis of AAVE Prices

    AAVE is without a doubt a fantastic investment opportunity, but the fruits of that investment have yet to bear fruit. Despite having delivered a return of more than 100% in the last few days, it has been difficult to maintain a buying or positive sentiment. Every time AAVE attempts to break through the $420 resistance level, selling pressure builds.

    When the movement of the 100 and 200 day moving averages is compared, the strength of this rally appears to be a little dull. Although AAVE has returned to its famed $400 level in less than a week, we remain skeptical that the current price movement will push the $420 mark on a closing basis.

    Yesterday was a good day for AAVE, as it gained 17% on double the volume of the previous day. Previous failures were predicted by the flat bottom and consolidation patterns even before they occurred. Aave appears to be taking support from the active 100 DMA at $318, which has helped it take over the 200 DMA. However, according to our AAVE forecast, the price movement will stall before $400. For the last three months, a rally toward $500 has been overdue. The RSI indicator indicates a good reversal from close to negative zones to bullish levels.

    In a vertical movement towards $305, AAVE has taken off towards its stronger resistance level of $420. Price movement has been strong, with back-to-back buying volumes, but consolidation near $400 levels has hammered buyers yet again. Buyers are active in the $377 to $384 range, but there is a decent trend line. Successful trading above $400 can trigger a new bullish buying spree in AAVE, bringing it closer to its failed resistance level of $420. The MACD on the hourly chart has clearly indicated a bearish covering signal.

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