AAVE Price Prediction and forecast: Technicals Suggest Downturn
After rising 109% in 2023, the AAVE coin has experienced a somewhat bumpy start to 2024. The first month of the New Year has brought about 18% losses in AAVE coin price. AAVE Network has 3rd rank on the Ethereum blockchain in terms of Total Value Locked (TVL) with a $6.9B figure.
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Despite having this significant TVL number, the coin is facing selling pressure these days. However, AAVE investors need not worry about the bearish AAVE Price Prediction presented by technical analysis.
See related forecasts for: AXS | XLM
AAVE V3 MVP Deployment on Neon EVM
There are talks in the market about a new proposal from the AAVE governance forum. The proposal is in the works to launch version 3 on Neon EVM, a platform facilitating Ethereum functionality on the Solana network.
This means Aave’s lending services might soon extend to Solana as a trial! Presented by the Neon Foundation and Aave Chan Initiative, the Aave community is actively discussing the proposal and providing feedback.
The idea is to start cautiously, introducing a few assets and adopting conservative risk measures. If approved, Aave could tap into Solana’s capabilities for lending services. This could spark some positive momentum in the AAVE price movement.
AAVE Price Prediction – Will A Break from Consolidation Push Prices towards $300?
In the weekly chart analysis of AAVE/USDT, the current trading price stands at 88.52. Over the past three weeks, the AAVE cryptocurrency has exhibited a consistent decline. Since May 2022, the coin has undergone a consolidation phase, fluctuating between $50 and $128.
In October 2023, the coin successfully surpassed the 50EMA (red line). However, it encountered resistance at the 100 EMA (blue line) and is currently navigating between both EMAs. The overall technical outlook indicates a bearish AAVE Price Prediction.
This is further supported by the red histograms on the Awesome Oscillator (AO). Although the histograms continue to appear above the zero line, their red color signifies an increasing selling pressure in the market.
Presently, the 50EMA at $84 serves as the initial support for AAVE. A breach and closure below this level could initiate a downtrend. It could potentially extend losses to the next support level at $50. This level aligns with the lower boundary of the consolidation range.
Other analysts like PattaTrades on X, not that if $AAVE rises above $88, it might be a big gap up closer to $100.
On the flip side
Conversely, if the 50EMA successfully prevents further declines, a reversal to the upside may ensue. In such a scenario, the initial resistance lies at the 100 EMA. A closing above this level could trigger a bullish trend, with the subsequent resistance at $167, a level last observed in April 2022.
A breakthrough and closure beyond this level might propel prices to as high as $300. This represents a substantial 238% increase from the current price level. It is essential to note that this outlook pertains to a long-term movement.
As always, make sure to do your own research prior to making any trades. Consult a licensed financial advisor prior to investing in crypto, which for the most part is highly volatile.
