The Aave price has been under intense pressure lately as the total value locked (TVL) has flattened. The AAVE has dropped by almost 10% in the past 24 hours, bringing its total market cap to more than $4.89 billion. In contrast, the UniSwap price has jumped by more than 6% in the past seven days, making it the eighth-largest digital currency in the world.
The background: Aave is one of the biggest DeFi projects in the market today. The platform enables people from around the world to lend and borrow ETH 2.0 tokens in an easy method. Borrowers access their funds by depositing collateral in the funding pool.
Unlike other centralized peers to peer lending companies, Aave does not set interest rates, making it a good alternative. Other popular DeFi lending projects are Compound, Maker, and InstaDApp.
While Aave has been in a strong upward trend over the years, the total value locked in the network has flattened. Indeed, data by DeFiPulse shows that the overall value has dropped from an all-time high of $6.07 billion to $5.16 billion, as shown below.
Aave price prediction
On the four-hour chart, we see that the Aave price rose to a high of $584 on February 10. The price then declined to $280 during the previous crypto sell-off. Since then, the price has formed what looks like an ascending triangle.
This is shown in blue on the chart below. In fact, the AAVE price is along the lower side of the triangle pattern. The price is also along the lower line of the Bollinger Bands. Therefore, in my view, the price will likely resume the uptrend in line with the ascending triangle. However, a steeper decline below the ascending trendline will invalidate this prediction.
Don’t miss a beat! Follow us on Telegram and Twitter.
Aave chart
More content
- Download our latest quarterly market outlook for our longer-term trade ideas.
- Follow Crispus on Twitter.
- Do you enjoy reading our updates? Become a member today and access all restricted content. It is free to join.