Aave price is bouncing back after sliding to a low of $397 during the weekend. The world’s second-biggest DeFi project is trading at $504, which is close to its all-time high of $540.
What happened: Aave is the second-biggest DeFi project in the world with a total value locked of more than $5.5 billion. This value has been on a strong uptrend recently as more people have turned to its lending marketplace.
For starters, Aave is a DeFi project that is decentralizing the lending world. People from around the world can use the platform to raise collateralized loans while investors can earn interest from their assets. In the past few months, the total value locked in the ecosystem has been on an ascending trend, as shown in the chart below.
Aave is not the only DeFi project on a growth path. In total, the TVL of all DeFi projects tracked by DeFiPulse has jumped to more than $34 billion. Also, ten projects have more than $1 billion in TVL. The most recent entrants to the $1 billion club are Alpha Homora, Balancer, Badger DAO, and Synthentix.
Aave price prediction
On the four-hour chart, the Aave price is attempting to retest the YTD high of $540 that was reached last week. It is still above the 25-day moving average and the ascending black trendline. The Relative Strength Index (RSI) is also above the ascending trendline.
Therefore, in my view, I predict that the price will continue rising. This trend will accelerate if the price manages to move above the resistance at $540. If this happens, the next key resistance to watch will be $600. However, a drop below the weekend low at $397 will invalidate the bullish trend.
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