The AAVE price rose to an important resistance on Monday as cryptocurrency prices continued rising. The token is trading at $109.20, which is the highest it has been since May 10th this year. It has risen by more than 77% from its lowest level this year, bringing its total market cap to over $1.5 billion.
Aave rebound continues
Aave is a leading blockchain project that is in the decentralized finance (DeFi) industry. It is one of the oldest players in the sector. According to DeFi Llama, Aave has a total value locked of over $8.78 billion, making it the third biggest DeFi platform after Maker and Curve.
Aave offers numerous services to its clients. For example, it has the AAVE liquidity protocol that enables people to earn interest, borrow assets, and build applications. According to its website, the total liquidity in its ecosystem is over $14 billion.
Aave was originally created using Ethereum’s network. In the past few months, the developers have pushed to other key chains like Polygon, Avalanche, Arbitrum, AMM, Fantom, and Harmony among others.
Learn more about how to buy Ethereum.
The AAVE price declined sharply this month as investors reacted to the collapse of Terra and its ecosystem. The main concern among DeFi players was that it was possible for them to lose money in the unregulated DeFi industry.
Recently, however, the price of the AAVE token has bounced back and more than doubled from its lowest level this month. This rally is in sync with what other cryptocurrencies like Bitcoin and Ethereum have performed.
At the same time, investors are hopeful that AAVE and other traditional DeFi platforms will keep doing well since they are backed by asset-backed stablecoins like Tether and USDC. This differs from Terra, whose stablecoin was algorithmic in nature.
AAVE price prediction
The four-hour chart shows that the AAVE price has been in a strong bullish trend in the past few days. On Monday, the token moved to the resistance level at $111.53, which was the highest point on May 10th. The price is above the 25-day and 50-day moving averages.
It has also formed an ascending triangle pattern while the Relative Strength Index (RSI) has moved close to the overbought level. Therefore, AAVE will likely keep rising as bulls target the key resistance at $120. A drop below the support at $100 will invalidate the bullish view.