In this article, we will analyze the AAVE coin, according to coinmarketcap data. First, we will discuss the AAVE coin and its projects and make a technical and graphic analysis. The analysis we will do in the weekly period will help the investors to take risks and manage their portfolios.
What is AAVE Coin?
AAVE is a decentralized finance (DeFi) protocol that allows users to lend, borrow, and earn interest on cryptocurrency without the need for a traditional financial intermediary. AAVE is also the name of the native cryptocurrency of the AAVE protocol.
The AAVE coin (AAVE) is an ERC-20 token on the Ethereum blockchain that is used to govern the AAVE protocol. Holders of AAVE can vote on proposals to change the protocol and earn a portion of the fees generated by the protocol.
What are the projects of AAVE?
The AAVE protocol has several projects, including Aave Protocol, Aave Arc, Aave Markets, Aave Grants DAO, and Aave Ventures. Aave Protocol is the main lending and borrowing platform, while Aave Arc is a permissioned version of the Aave Protocol for institutional investors. Aave Markets is a platform for trading and liquidity provision, while Aave Grants DAO funds open-source development and community initiatives. Aave Ventures is a venture capital arm of the Aave protocol, investing in blockchain and DeFi projects.
Factors Influencing AAVE Price
There are several factors that can influence the price of AAVE coin, including:
Market sentiment towards the DeFi sector: The DeFi sector is still relatively new, and investor sentiment towards it can be volatile.
Adoption and usage of the AAVE protocol: Increased adoption and usage of the AAVE protocol can lead to increased demand for AAVE coin.
Competition from other DeFi protocols: There are several other DeFi protocols that offer similar services to AAVE, and competition from these protocols can impact the price of AAVE coin.
Regulatory developments: Regulatory changes or uncertainty around DeFi and cryptocurrency can impact investor sentiment and the price of AAVE coin.
Overall market conditions: Like other cryptocurrencies, the price of AAVE coin can be influenced by overall market conditions, such as Bitcoin’s price movements or broader economic conditions.
AAVE COIN TECHNICAL ANALYSIS
AAVE started trading in October 2020 and reached its highest peak value of $ 668 in May 2021. Then, due to the selling pressure in the market, it lost 93% of its value until June 2022 and fell to $45.6. At the time of writing, it is sold at $ 72.7. According to www.coinmarketcap.com data, AAVE, which has a size of $1,025,661,678, has had a volume of $57,526,912 in the last twenty-four hours.
AAVE Chart Analysis
After reaching the highest peak value of $ 668 in May 2021, AAVE fell 93% until June 2022, falling to $ 45.3. When we examine the AAVE chart, we see that AAVE, which is still in a downtrend, is trying to stay above the $51.1 support. Staying above this support, its initial target will be the downtrend line and $95.5. AAVE, which will make the mid-rise when it rises above the downtrend, may face severe selling pressure and regress to $26.3 if it breaks the $51.1 support.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their research when deciding. This article does not include investment advice or suggestions. Every investment and trading move involves risk, and readers should perform their analysis when determining.