- Aave has emerged as the top-performing asset among all DeFi projects in the cryptocurrency industry.
- AAVE/USD is struggling to find support above $130 following a rejection at $140.
- The IOMAP model reveals that AAVE has a smooth ride for gains above $140, likely to invalidate the bearish outlook.
The last few months of 2020 were extremely yielding. Bitcoin almost hit a record high at $42,000 while the rest of the cryptocurrencies grew significantly. Aave soared by a colossal 6,372%, topping decentralized finance digital assets (DeFi) year-over-year.
Aave outperforms other DeFi projects
According to Messari, a renowned cryptocurrency analysis platform, Aave almost tripled Yearn.Finance growth in 2020, which came second after soaring 2,729%. THORChain came third following a 1,700% spike ahead of UMA with 906%. Other great performers in the DeFi sector include Loopring at 690%, Gnosis at 575% and the token with the largest market cap in the ecosystem, Synthetix at 499%.
DeFi top performers in 2020
In the meantime, Aave is trading at $137 after hitting a barrier at $140. The goal among the bulls is to establish higher support, preferably above $130. If push comes to shove and losses stretch out significantly, AAVE price would test the 50 Simple Moving Average for support around $120.
-637461232658069064.png)
AAVE/USD 4-hour chart
The TD Sequential indicator has just presented a sell signal on the 4-hour chart, adding credence to the pessimistic outlook. The bearish formation developed as a green-nine candlestick anticipating a one to four daily candlesticks correction.
A red two candlestick trading below a preceding red-one candle could serve as confirmation that AAVE is poised to drop further.
-637461232623537363.png)
AAVE/USD 4-hour chart
On the other hand, IntoTheBlock’s IOMAP reveals the lack of a substantial resistance ahead of Aave. This shows that the DeFi token could rally to new yearly highs beyond $140 if the tailwind behind it surges.
-637461231349379065.png)
AAVE IOMAP chart
On the downside, Aave is sitting on areas with immense support. The most robust anchor zone runs from $117 to $121. Here, 1,600 addresses are currently profiting from the approximately 592,000 AAVE previously bought. It will be a daunting task for the bears to slice through this support area, which may invalidate the pessimistic outlook.
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
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
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.