Aave is an open-source liquidity protocol that allows users to earn interest on deposits and borrow assets. It is a decentralized and non-custodial blockchain network. Thus, users can earn passive income on this platform and borrow under-collateralized or over-collateralized loans. AAVE is the prime governance token of this ecosystem. Let us look at the technical analysis of AAVE.
On Jul 16, 2021, AAVE opened at $271.90. On Jul 22, 2021, the price closed at $278.51. Thus, in the past week, the price has increased by roughly 2.5%. In the last 24 hours, AAVE has traded between $260.04-$289.45.
Day-Ahead and Tomorrow
Currently, AAVE is trading at $289.46. The price has increased from the day’s opening price of $278.51. Thus, the market seems bullish.
The MACD and signal lines are positive. Moreover, a bullish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bullish. Hence, we can expect the price to rise further.
Currently, the RSI indicator is at 63%. It faced rejection at 68% and fell to the current level. However, buying pressures are still high. High buying activity will exert upward pressure on the AAVE price.
The OBV indicator is also upward sloping. Thus, buying volumes are higher than selling volumes. Hence, the price may rise further. In short, all three oscillators have indicated a positive market momentum.
AAVE Technical Analysis
Currently, the price is above the first Fibonacci pivot resistance level of $287.23. The price may soon break out of the second and third resistance levels of $294.17 and $305.41, respectively.
Currently, the price is above the 23.6% FIB retracement level of $282.51. It may soon break out of the 23.6% FIB extension level of $296.39. Thus, as of now, the bulls seem strong. Hence, we can expect the price uptrend to continue tomorrow as well.