Aave (AAVE) cryptocurrency has been trending upwards since the market crash. The cryptocurrency has increased by 5% in the past week. At the time of writing, Aave coin stands at a price level of $382. The price has gone up by 5% in the daily timeframe while the daily trading volume is declining.
Aave (AAVE) Technical Analysis
The overall market sentiment for the cryptocurrency is neutral. Out of the total twenty-six technical indicators, ten are standing at a neutral position while nine are giving out a buy signal and seven are at sell position. The oscillators are bullish while the moving averages are neutral.
Aave coin is identified to be operating in a triangular formation. The cryptocurrency has been oscillating up and down in the formation with the boundaries acting as strong support and resistance. Per the analysis, Aave crypto is approaching the end of the formation which would mean a break out from the triangle is near. The bullish momentum of the cryptocurrency suggests an upward break out from the formation is more likely. If the scenario plays out, Aave crypto can reach towards $480.
Aave soaring high but why?
The cryptocurrency market crash may have hindered the growth of cryptocurrencies for a while but it certainly cannot invalidate the blockchain technology. Just after the market crash, Aave coin has become one of the top-performing cryptocurrencies to watch out for. Aave’s total value locked has surpassed $20 billion. Aave has been soaring high becoming one of the top DeFi projects in terms of total value locked (TVL).
Aave coin has recently embraced the layer-2 scaling solution Polygon (MATIC) which has helped in the growth the project was able to achieve. Aave’s rate of adoption has increased too – partly thanks to Polygon. Aave’s monthly userbase of new users is 50% higher than other competing DeFi projects like Maker and Compound.