- Summary:
- The Aave price is once again testing resistance at $500 as increasing volume suggests the price has more room to run on the upside.
The Aave price is once again testing resistance at $500 as increasing volume suggests the price has more room to run on the upside.
Aave continues to rebound spectacularly from its 15th of April $272 low. In the last 2 weeks of trading, the Aave price has climbed 83% to its current level of $498, knocking on the door of $500.
DeFi Boom
The Aave price has increased as investors rush to take advantage of the ongoing boom in Decentralized Finance (DeFi). The Aave protocol allows users to both lend and borrow against a wide range of crypto assets.
Lenders are paid to deposit their Crypto assets with Aave, which increases the liquidity of the platform. On the other side of the trade are borrowers who can take out a loan collateralized by deposited cryptocurrency.
The rise in Aave price has seen the token climb the coinmarket.com ranking system. Aave currently sits at #26 with a valuation of $6.37 Billion.
Aave Price Forecast
From the start of 2021, the Aave price has been on a tear, posting a return of 585% at the February 10th peak of $583.30. Since then, we have witnessed volatile trading conditions, the asset fluctuating wildly between $270 and $500.
Now testing the upper end of that trading band, I am encouraged by a steady increase in volumes, suggesting healthy buying interest. In my opinion, a close today above the $500 level should see the price push on to the $583.30 all-time high.
A close below the 3rd of April high at $423 would invalidate this bullish call.
Aave Price Daily Chart
Follow Elliott on Twitter