Aave (AAVE) fights with a swing resistance of $ 420!

The idea of ​​Stani Kulechov, Aave and his forerunner LEND is one of the leading cryptocurrencies in decentralized finance, even before the term DeFi was coined on the blockchain market. AAVE is a major cryptocurrency in the defi space with an emphasis on developing transparent peer-to-peer lending and crypto networks.

In contrast to the traditional financial system, AAVE can be used without registration or even know your customer service. Just connect your wallet to deposit, borrow, invest, or trade in the decentralized finance market. Since it was originally developed in the Ethereum network, all transactions are automatically triggered on the ETH blockchain using smart contracts.

Borrowing takes place via credit pools that are formed by the deposits of a large number of lenders. Each of the credit pools has server funds that serve as a hedge against impending volatility. Every depositor is rewarded for adding liquidity to the loan pools. Depositors earn from a percentage of the lightning loan fees and the interest generated on the amount borrowed from other borrowers.

Aave offers all borrowers the flexibility to choose their interest rate method from fixed, variable and variable. The fact that it handles all processes without a middleman, bank, restriction or regulation has made AAVE the new darling of the crypto world.

Currently, AAVE ranks 34th in terms of market capitalization of $ 5 billion and an overall valuation of 13.177 million coins. The rapid rate at which it makes a new high and the DeFi Marketplace is the reason why more and more people are interested in owning this native cryptocurrency. There are only a total of 16 million coins available.

AAVE price analysis

AAVE is undoubtedly a great investment opportunity, but the fruits of the investment have yet to generate some returns. Although it has returned over 100% in the past few days, it has been difficult to maintain a buying or positive mood. The stiff resistance at $ 420 has created selling pressure every time AAVE tries to break the level.

Comparing the movement of the 100 and 200 day moving averages, the strength of this rally seems a bit boring so far. Although AAVE has returned in less than a week to claim its $ 400 fame out of $ 300 in less than a week, we are still skeptical that the current price move can cross the $ 420 mark on a closing basis.

Yesterday was a good day for AAVE as it was up 17% with double the volume of the previous day. The previous failures were indicated by the flat bottom and consolidation patterns even before they occurred. Aave appears to be getting support from 100 DMA active at $ 318, which helped him take on even the 200 DMA. However, according to our data, price movement will stall before $ 400 AAVE prediction. A rally towards $ 500 is overdue in the past three months. The RSI indicator represents a decent reversal from nearby negative zones to bullish levels.

Aave price prediction

AAVE has risen in a vertical move towards $ 305 towards its stronger resistance level of $ 420. Price movement has been strong with back-to-back purchase volumes, but a consolidation near the $ 400 level hit buyers again. On closer inspection, buyers are active in the $ 377-384 range, but a decent trendline. A successful trade above $ 400 can trigger a new bullish AAVE closer to its failed resistance level of $ 420. The hourly chart’s MACD has given a clear bearish cover signal.

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