Aave
Is Aave on the brink of a breakout or pullback?
Published
2 months agoon
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adminAave (AAVE) has surged by 64.7% in less than a month. With such a strong rally, the question now is whether AAVE can continue its upward momentum or if it faces a potential pullback. In this week’s analysis, we examine the key technical indicators, resistance levels, and strategic considerations to determine the most likely direction for AAVE in the coming days.
Resistance and support analysis
Aave (AAVE) faces a critical juncture as it approaches a very strong resistance level at $115. This level has a significant history, having acted as resistance 20 times and support 24 times in the past. The price currently hovers around this key level, and the market is closely watching to see if Aave (AAVE) will once again encounter resistance for the 21st and 22nd times or finally break through. However, signs suggest that it may be difficult to overcome this barrier.
When examining historical support levels, two key areas stand out: the $80 mark and the $50 mark. While the $50 level served as support during the bear market, it seems unlikely that Aave (AAVE) will revisit this area in the current market conditions. On the other hand, the $80 level is a more recent occurrence and represents a support level worth keeping in mind as Aave’s (AAVE) price action unfolds.
Fibonacci retracements analysis
Looking at the macro Fibonacci retracement from the low in August 2019 to the high in May 2021, we observe a significant 78.6% retracement level at $143.09. The last time Aave (AAVE) approached this level was in March 2024, when it ultimately failed to break through. Should Aave (AAVE) succeed in surpassing its historical resistance at $115, the next logical profit target would likely be set at this $143.09 level.
On a more positive note, when examining the Fibonacci retracement from the March 2024 high to the April 2024 low, Aave (AAVE) successfully breached the 23.6%, 38.2%, and 50% levels. It is now approaching the golden pocket, which lies between $121.50 and $124.11. If Aave (AAVE) manages to break above the $115 resistance, this golden pocket represents the next key area to watch. It is a strong, bullish zone with minimal resistance, making it a likely target for further upward movement.
Lastly, when applying Fibonacci from the early July low to the present, we identify two potential levels where Aave (AAVE) might retrace if it fails to break through the $115 resistance. The first is the 23.6% level at $106.50, and the second is the 38.2% level at $99.77, which aligns closely with the psychological $100 mark.
Technical indicators
Bollinger Bands
Aave’s (AAVE) recent price action has moved it above the upper Bollinger Band, indicating an overextension in the current uptrend. While trading above the middle band typically signifies a strong upward trend, the price being above the upper band often suggests that the asset is overbought. This positioning implies that the upper band is likely acting as a resistance level, making sustained movement at this level improbable. Given this, it is likely that Aave (AAVE) may experience a correction soon as the price reverts to a more sustainable level within the bands.
MACD
The Moving Average Convergence Divergence (MACD) histogram continues to grow and remains in the green, which signals increasing bullish momentum. The recent bullish crossover, where the MACD line has crossed above the signal line, also strengthens the case for continued upward movement in the near term.
RSI
On the other hand, the Relative Strength Index (RSI) is approaching the overbought territory, hovering near the 70 level. Historically, when Aave’s (AAVE) RSI has reached around 70, the bullish momentum has often stalled and led to a pullback.
Strategic considerations
First, it’s important to consider the seasonal patterns within the cryptocurrency market. Historically, August and September have been challenging months for crypto assets. According to data from CoinGlass, the median Bitcoin monthly returns during these months are among the worst in the calendar year. Therefore, expecting significant upward momentum in Aave (AAVE) during this period may be overly optimistic.
Secondly, when evaluating Aave’s (AAVE) current situation using the technical indicators discussed, it becomes apparent that the bullish momentum is not as strong as it might initially appear. The recent breakthroughs in Fibonacci retracement levels and the bullish signals from the MACD are the only indicators suggesting potential upward movement. However, everything else points towards a likely correction.
Moreover, while Aave (AAVE) has benefited from positive news and increased whale activity, these factors seem to be losing steam.
The net flow of Aave (AAVE) into exchanges has risen, which indicates potential selling pressure. For instance, on August 1, the net flow into exchanges exceeded $8 million.
Considering these factors, several price targets emerge if Aave (AAVE) fails to break above $115:
- First target: $106.50
- Second target: $100
- Third target: $95
- Fourth target (worst-case scenario): The golden pocket is between $87.41 and $88.89, which closely aligns with the $90 level.
If Aave (AAVE) does manage to break above $115, the outlook will shift toward a bullish scenario. In such a case, traders should watch for a subsequent retest of the $115 level as new support. Successfully holding this level would confirm the breakout and reinforce the momentum. Profit targets should then be adjusted upwards, focusing on the golden pocket between $121.50 and $124.11, followed by $135.20, and ultimately $143.09.
Disclosure: This content is provided by a third party. crypto.news does not endorse any product mentioned on this page. Users must do their own research before taking any actions related to the company.
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Aave
Quickswap (QUICK) Surges as Ethereum DEXs Like Aave Aim for Much Higher in the Coming Weeks
Published
2 weeks agoon
September 8, 2024By
adminThe Bitcoin and altcoin market is experiencing a downturn, with increasing selling pressure. Bitcoin, the leading crypto, has been balancing within the $56,000 mark, and many altcoins are seeing similar losses. But, interestingly, some tokens are defying the trend and moving in the opposite direction.
Quickswap (QUICK) has recently defied market anticipations, experiencing a 7-day soar of over 19.21%. This Ethereum DEX has been gaining traction and is now one of the top performers in the market.
With these compelling developments, Aave and other Ethereum DEXs are poised for probable growth in the coming weeks, driven by improved ecosystem offerings and enhanced protocols.
DeFi Craze Continues to Drive Quickswap’s Growth
Quickswap’s growth comes from the DeFi boom in the market, where users seek higher yields and lower fees.
As the backbone of the DragonFi ecosystem, Quickswap has led the adoption of a new Chain Development Kit (CDK). It provides fast liquidity, farming, and asset staking with minimal gas fees.
The platform’s new trading feature and Binance listing have boosted its market presence, with the QUICK token soaring from $38.21 to a peak of $46.13. Despite market downturns, QUICK remains strong at $43.72, with trading volume up by 238%, showcasing robust investor and trader interest.
Aave’s Ambitious Roadmap: What Lies Ahead
Despite the current market turmoil, Aave is capturing investor interest with a fresh approach to market dynamics. Its price has surged 23.94% this past month, highlighting its potential. To maintain this momentum, Aave’s ambitious roadmap includes increased borrowing capacity and better protocol integrations.
These changes aim to enhance accessibility for Ethereum DEXs and user-friendliness for new and seasoned traders. As Aave evolves, its strategies could influence broader market dynamics, potentially impacting other DEXs like RCO Finance.
RCO Finance (RCOF) Riding the Ethereum DEXs Wave
RCO Finance is carving out a niche in the densely populated Ethereum DEX sector, driven by innovative features and a commitment to user empowerment.
Core to RCO Finance’s appeal is the introduction of a groundbreaking AI-powered Robo Advisor that will revolutionize one’s experience in DeFi investment through personalized financial insights and strategies.
Unlike human, financial advisors, the innovative tool processes large flows of market data in real time and makes customized recommendations according to one’s risk profiles and investment objectives. This allows new and professional traders to source their crypto market involvement more confidently and precisely.
Furthermore, RCO Finance stands out by enabling users to diversify their portfolios across various asset classes beyond cryptocurrencies. By investing in derivatives, bonds, commodities, and even foreign exchange (FX), RCOF users can access approximately 150,000 additional asset classes.
Security is another cornerstone of RCO Finance’s platform. This Ethereum DEX has eliminated the need for Know Your Customer (KYC) procedures, ensuring user anonymity while maintaining compliance with regulatory standards.
Additionally, RCO Finance has a brokerage crypto license, further solidifying its commitment to regulatory compliance and user trust.
RCO Finance integrates seamlessly with Fireblocks for asset management, protecting user information and funds. Rigorous security measures, including smart contracts audited by reputable firms like SolidProof, assure the RCOF tokens’ integrity and clarity.
Is RCOF Really Worth the Investment?
The RCOF Ethereum DEX is a comprehensive platform that allows investors to trade and generate passive income through staking, yield farming, DeFi lending, and earning dividends, all powered by crypto AI technology.
Investors can autonomously expand their portfolios with the DEX’s high leverage of up to 1000x and its automated market-making feature.
Emphasizing decentralization, RCOF token holders enjoy voting rights, giving them a voice in future platform developments and decisions.
This decentralized approach fosters a sense of community ownership, aligning users’ interests with the platform’s growth and evolution. Furthermore, a tier-based rewards system encourages active participation, offering benefits such as reduced transaction fees and exclusive perks for token holders.
RCO Finance rides the wave of interest in Ethereum DEXs and is strategically positioned to engage with the DeFi sector’s expansion. The RCOF token presale has attracted significant attention, raising over $1.8 million, with potential returns projected at up to 3,000% for early investors.
With aspirations to mirror the success of platforms like Quickswap (QUICK) and Aave during the upcoming altcoin season, RCO Finance presents an intriguing opportunity for those looking to diversify their portfolios and engage with the dynamic world of Ethereum DEXs.
For more information about the RCO Finance (RCOF) Presale:
Join The RCO Finance Community
The post Quickswap (QUICK) Surges as Ethereum DEXs Like Aave Aim for Much Higher in the Coming Weeks first appeared on BTC Wires.
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Aave
AAVE jumps 11% fueled by heightened whale activity
Published
2 weeks agoon
September 5, 2024By
adminAAVE, the native token of the decentralized lending platform Aave, has recently attracted attention from whales as its price surged by over 11% on Sep. 5.
At the time of writing, Aave (AAVE) had climbed to become the 42nd largest cryptocurrency, up from its 47th position on August 20. The token’s market capitalization exceeded $1.98 billion, marking a more than 4% increase in the past 24 hours.
According to price data from crypto.news, AAVE was trading at $132.95, rising from its weekly low of $116.13 reached just the day before. The token has seen a significant 60% increase over the last 30 days. Despite this recent rally, AAVE remains 80% below its all-time high of $661.69, achieved in May 2021.
The latest surge in AAVE has been largely driven by a major jump in whale activity. On Sep. 5, Lookonchain reported that two whales acquired around $2.2 million worth of AAVE within a span of less than three hours.
Moreover, the previous day, another whale purchased a substantial 50,604 AAVE tokens, valued at approximately $6.78 million, with an average price of $134.60 per token. This brought their total holdings to 125,605 AAVE tokens, valued at about $16.9 million at current prices.
AAVE has increasingly gained traction among whales in August, likely due to its solid fundamentals. Data from DeFiLlama shows that Aave holds over $11 billion in assets and has generated more than $281.39 million in fees this year.
Moreover, data from IntoTheBlock reveals that whales controlling over 1% of Aave’s circulating supply now hold 59.17% of the total supply. The high concentration of large holders suggests that AAVE’s price is being influenced by whale activity.
Additionally, there has been a sharp increase in both the inflows and outflows of AAVE among large holders, with inflows rising by 326% and outflows by 353% over the last week. However, the net flow of AAVE among large holders surged by 61% in the same period, indicating strong buying interest that has helped drive the upward momentum in AAVE’s price.
The recent price surge in AAVE also comes after Donald Trump announced his DeFi initiative, World Liberty Financial. This project plans to develop a decentralized financial system using Aave’s non-custodial lending platform and Ethereum’s infrastructure.
Gabriel Shapiro, a legal adviser for the initiative, explained that it will function as a “lightweight non-custodial feeder” into Aave, enabling users to make deposits without the need for creating a fork. The venture aims to introduce Trump supporters to DeFi, which has bolstered confidence in Aave’s potential for mainstream adoption and spurred speculative buying.
Major liquidation levels
Currently, key liquidation levels are around $130.2 on the lower end and $139.8 on the upper end, with intraday traders highly leveraged at these points, according to on-chain analytics firm Coinglass.
If market sentiment shifts and AAVE’s price drops to $130, nearly $1.78 million in long positions could be liquidated. On the other hand, if sentiment improves and the price climbs to $139.8, about $5.04 million in short positions may face liquidation.
At press time, data indicated that bears were in control, with the potential to trigger liquidations of long positions at lower levels.
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Aave
‘Pains Me to Say It’: Large-Cap Memecoin To Keep Bleeding, According to Crypto Trader – Here Are His Targets
Published
3 weeks agoon
August 30, 2024By
adminLargely followed crypto analyst Altcoin Sherpa is warning that more weakness is ahead for one large-cap memecoin.
The pseudonymous trader tells his 221,500 followers on the social media platform X that Dogecoin (DOGE) could depreciate by over 10% from its current level, even after bleeding more than 20% this month.
Sherpa says,
“Pains me to say it but DOGE probably keeps bleeding until the $0.08s. I still think this is probably a decent one for this cycle for passive investors but eh.”
Based on the trader’s chart, he appears to suggest that the key levels to watch on Dogecoin’s potential move down are $0.0998, $0.0855 and $0.0736.
Dogecoin is trading at $0.101 at time of writing.
Altcoin Sherpa also offers his take on Solana (SOL). According to him, Solana could revisit the $190 level over the short term if SOL overcomes a resistance level at around $165.
Says the analyst,
“A break of $165 would mean price probably goes to $190 in the short term. I still think $120 – $150 is a good place to accumulate SOL personally.”
Solana is trading at $145 at time of writing.
Next up is the native token of decentralized finance (DeFi) platform Aave (AAVE). Sherpa says that he sees AAVE falling by at least 12% from its current level.
“AAVE had a decent bounce but I think that it’s still going to go to around $110 at a minimum. Would be patient. I’m not bidding DeFi until it has a sustained trend/move.”
AAVE is trading at $125 at time of writing.
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