• Aave soars from the last week’s support but hits a barrier under $80.
  • The spike in network growth supports AAVE/USD uptrend, but traders must tread carefully.
  • A breakout above the resistance range between $80 and $90 could boost Aave significantly above $100.

Aave is up 17% in the last 24 hours, although the decentralized finance token was late in joining the weekend rally. At the time of writing, it seems poised for more upward action as the week kicks off. A spike is anticipated towards $100, mostly if the seller congestion between $80 and $90 is overcome.

Aave seems ready for the final leg to $100

Following the breakdown last week from highs around $84, AAVE/USD embarked on a journey downstream. The declines were triggered by a bearish wave that swept across the market after OKEx exchange resumed withdrawal services for digital assets and cryptocurrencies.

A recovery ensued towards the end of the week, with Aave soaring above $70. At the time of writing, AAVE is trading at $75 amid a gradually building bullish momentum. Resistance is expected between $80 and $90. If broken, the token’s $100 price prediction would be quite conservative.

AAVE/USD price chart

AAVE/USD daily chart

The bullish narrative has been validated by the Relative Strength Index recovery toward the overbought region. A break above the trendline connecting the most recent lower highs could call for more buy orders, as the price is blasted towards $100.

Similarly, the gap made by the 50-day Simple Moving Average above the 100-day SMA and the 200-day SMA reinforced the bulls’ strengthening position in the market.

AAVE/USD price chart

AAVE/USD 4-hour chart

The Moving Average Convergence Divergence has also validated the bullish outlook on the 4-hour chart. The indicator has reclaimed the position within the positive territory, confirming the firm bullish grip. A bullish divergence above the MACD shows that buyers have the upper hand.

On the other hand, Santiment’s network growth, an on-chain metric, emphasizes that AAVE is in a bullish phase. The metric tracks the number of new addresses joining the network each day. A spike in the newly created addresses is viewed as a bullish indicator, as it highlights adoption is on the rise. The token’s price is likely to surge as network growth shoots upwards.

AAVE network growth

Aave network growth chart

On the flip side, a high network growth can also suggest that the uptrend is nearing the point of correction. Therefore, the spike tells traders to be aware that bears could swing into action.

Similarly, if AAVE fails to break above the hurdle between $80 and $90, the bullish narrative might be sabotaged or take longer to materialize. A break under the 50-day SMA might end up in significant losses toward the next support at $51, as highlighted by the 100-day SMA.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP