The Aave price has been in a strong bullish move since June 19, which has seen its price surge by 134 per cent. Today, the strong bullish move looks to have resumed, with prices already up by a percentage point. The resumption of the upward move comes a day after prices dropped by 3 per cent following Wednesday’s 13 per cent spike.
There are many reasons behind the current price recovery of Aave, among them being the current bullish trend of the cryptocurrency industry, which has meant altcoins that are positively correlated have also been pushed up.
Another reason for the current price surge has been Aave’s constant development, which points to the progress of the cryptocurrency. In July, the community agreed to build its own stablecoin. Fast forward to today, the development looks to continue, with the governance community approving plans to fund Aave version 3 (V3).
Aave’s popularity has also been due to its large userbase; today, Aave boasts of having more than $5.75 billion in total value locked on its platform. Aave is also one of the largest cryptocurrencies in existence today, with a market capitalization of $1.5 billion.
Looking at the chart below, today’s price increase is a continuation of a long-term bullish trend. The chart also shows the prices have traded within an ascending channel since June 19. During that time, the prices surged by 134 per cent.
Therefore, my Aave price prediction does not expect the current strong and aggressive bullish trend to change. Instead, I expect a continuation, with a high likelihood of Aave’s price hitting the $124 resistance level. There is also a high likelihood that the current bullish trend will break above the resistance level, which will see prices surge to trade above the $130 price level.
However, should the price retreat and trade below this week’s price low of $95, my bullish analysis will have been invalidated. A possible bear move should be expected.
This post was last modified on Aug 12, 2022, 15:02 BST 15:02