AAVE Price: Despite the broader market correction, Aave, the native token of the decentralized finance platform Aave, has experienced a significant uptick since last week. The altcoin saw a 13% increase, with its price climbing from $93 to $105.1. However, as Bitcoin’s price stabilized above $67,000, most major altcoins, including AAVE, faced a decline in bullish momentum. This resulted in a bearish evening star candle pattern forming at $114, signaling the potential for a new correction.
Also Read: Robert Kiyosaki Slams “Bonds Are Safe” Claims, Advocates Buying Bitcoin
Defi Protocols See Significant Increase in Total Value Locked (TVL)
Source- Tradingview
Amid the renewed recovery interest in the crypto market, the AAVE price managed to form a local bottom at a $80 psychological level. A positive turnaround from this support uplifted the asset by 31% within two weeks to reach $105.
During this rally, buyers broke through the $97.5 resistance level, moving out of a five-week accumulation phase to fuel a new recovery. Despite the broader market consolidation, AAVE’s price encountered overhead resistance at $114 and subsequently fell by 3.3% today.
This downtick reveals the formation of a bearish evening star candle pattern which hints at a potential retest to $97.5 support.
In a recent analysis shared by renowned analyst ZYRE, the Total Value Locked (TVL) in DeFi protocols has demonstrated a robust upward movement. According to data from IntoTheBlock, the TVL has surged from $93.98 billion on May 20th to an impressive $108.61 billion by May 27th, indicating a substantial increase in liquidity within the DeFi space.
The TVL of #DeFi protocols did a healthy move from $93.98B on May 20th to $108.61B Today May 27th.
There is a liquidity increase
Source: @intotheblock pic.twitter.com/hsilns0Tbt— 🍞ℤ𝕐ℝ𝔼 (@lord_zyre) May 27, 2024
This significant rise marks a healthy growth in liquidity, showcasing the strengthening confidence and participation in DeFi protocols.
If the AAVE price breakout from $97.5 sustains, the buyers could drive a rally to $134, followed by $153.7.
Technical Indicator:
- Exponential Moving Average: A potential bullish crossover between the 20-day EMA from the 50-and-200-day EMA could accelerate the buying pressure in the AAVE price.
- Average Directional Index: The uptick in ADX (27%) slope hints the prevailing bullish is not yet exhausted and buyers could lead a higher rally.
Related Articles
Be the first to comment