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Crypto Price Prediction

AAVE  Price Analysis: Researching AAVE Price Patterns 

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  • The price of AAVE is trading near $49.72.The 24-hour trading volume was at $41.513 Million.
  • The AAVE price has been observing a decline of -0.74% in the last 24 hours.
  • The AAVE year-to-date return is -4.16%.

Aave coin (AAVE) is the inherent governance token of the Aave protocol, a decentralized money market platform that enables users to lend and borrow cryptocurrencies. AAVE holders can join in the decision-making process of the protocol and enjoy reduced fees and rewards. Aave also gives groundbreaking features like flash loans and rate switching, which allows borrowers to select between fixed and variable interest rates. Aave was introduced in October 2020 and was established in November 2017 by Stani Kulechov. Aave is one of the leading protocols in decentralized finance (DeFi), with over $3 billion worth of crypto locked in its smart contracts.

Trend Analysis

Considering trend and price information history, we can say that AAVE is in a downtrend. The price has declined -16.90% within a week. It can be said that AAVE is showing poor performance.

AAVE Trading Downwards

Technical Analysis (1D Timeframe)

Technical Analysis
Source:  AAVE/USD.1D.COINBASE by TradingView
Source:  AAVE/USD.1D.COINBASE by TradingView
Technical Analysis
Source:  AAVE/USD.1D.COINBASE by TradingView

AAVE Price Analysis

EMA 20 & 50: EMA is a moving average that places more weight on recent price data than a simple moving average (SMA). It reacts more quickly to price changes and can help identify trends and reversals. The AAVE price is below the 20 and 50 EMAs, which indicates that the price will decline. If sellers continue to lower the price, it could drop further in a week. So, selling is suggested.

EMA 100 & 200: The price of AAVE at present is trading below 100 & 200 EMA, which suggests the price could fall shortly. If the sellers continue to push the price downwards, it could fall more in value within a week. Hence, indicating sell.

MACD: Based on this chart, we can see that the AAVE coin is in a downtrend as the MACD line is below the signal line, both negative and below the zero line. Therefore, indicating bearish momentum. The MACD line is at -3.87, and the signal line is at -2.97.

Also, the indicator is considered bullish when the signal line gets cut by the MACD line from below. Likewise, the indicator is considered bearish when the signal line gets cut by the MACD line from above. In this case, The MACD line crosses from above to below the signal line, meaning the indicator is considered bearish. Hence, indicating sell.

RSI: The RSI line has been declining and approaching the oversold territory or the oversold level of 30 for the past few days. The 14 SMA has a value of 34.47 points and the RSI line is around 28.13. This indicates that the AAVE market is in the oversold zone. The RSI is suggesting that the market may be losing steam soon.

Stoch RSI: The Stochastic RSI fluctuates between 0 to 100; with readings below 20, it is considered oversold, and those above 80 reflect overbought conditions. The current %d line is 25.92, and the %k line is 15.29. It indicates AAVE is in the oversold zone.

Supertrend: It is a simple indicator forged with the help of just two parameters; period and multiplier. At period value 20 and multiplier value 2, it shows buy and sell signals. As shown in the chart, it’s bearish.

A possible technical analysis based on these indicators & trendline:

  • Based on these indicators, AAVE has been in a downtrend, making lower highs and lower lows. 
  • The MACD line is below the signal line and zero, indicating bearish momentum. 
  • The RSI indicates bearish pressure and possible oversold conditions. The price is also below all EMAs, indicating strong resistance. EMA’s indicate a bearish trend.

If the price continues to fall and breaks below $47.2, the bearish trend may resume, and a short position could be taken.

The indicators are all pointing to a bearish momentum for AAVE. There may be temporary rebounds or reversals along the way, especially if the RSI reaches oversold levels or the MACD crosses above the signal line.

As per the Trendline, it seems it’s respecting both Trendline and Support zone drawn on the chart. It is taking support and resistance quite well. From the point where it declined from the trendline, it’s been bearish from that moment. For now, we can say if it falls below 47.2 which was the last support, then it can go downwards soon and reach the nearest support zone. So, the price of AAVE can continue to fall. 

Conclusion

According to the analysis, the Indicators support the bears. If the price continues to move under the seller’s control, it is expected to fall more shortly from the current levels. Presently, investors & traders are bearish regarding the price of AAVE in the 1D timeframe.

Technical Levels:

  • The Nearest Support Zone  – $48.09, then $44.39
  • The Nearest Resistance Zone –  $60.99, then $63.78

Disclaimer

In this article, The views and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.

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