Aave price maintained its upward rally on Wednesday, rising to two-month highs of $110.40 before easing lower to trade at $109.54, with daily gains of 4 percent at the time of writing. The crypto asset has been on a strong upside rally, with its gains in the last week standing at 10.7 percent. The latest momentum is fueled by the excitement around a change in its governance proposal enabling a fee switch. Also, the DeFi platform just announced that its Aave V3.1 upgrade had gone live. The move introduced an improved codebase, which will enhance security, efficiency and usability across an EVM ecosystem with over $21 billion in TVL.
AAVE price looks to continue the upside as signaled by momentum indicators on the 4-hour chart. First, the price has been above the middle band on the Bollinger bands indicator for the past five days, signaling bullish control. However, attempts at breaking above the upper band have been rejected multiple times.
Also, the Moving Average Convergence Divergence (MACD) indicator is marginally above the signal line, supporting the view that the upside momentum could be waning. That said, the upside movement could be sustained if AAVE stays above the 104.22 mark, which aligns with the middle Bollinger Band.
The momentum on AAVE price suggests control by the buyers above the $108.55 level. In that case, the resulting momentum could take the asset to $110.50, where it will meet the first resistance. However, sustained control by the buyers at that point could build the momentum to break above that mark, and potentially take AAVE higher to test $112.00.
Alternatively, the sellers will likely take control if the price breaks below $108.55. That could see the establishment of the first support at $107.06. Further control by the sellers at that point will break the support and potentially invalidate the upside view. Also, it could strengthen the downward momentum to test $105.68.
This post was last modified on %s = human-readable time difference 18:22