AAVE price made a strong comeback this week, rising for two consecutive days, and moving to its highest level since April 18 2022 as sentiment in the crypto industry improved. It jumped to an intraday high of $185, a 255% increase from the lowest point this year.
AAVE jumps as crypto fear and greed index rises
The main reason why the AAVVE token jumped was that crypto investors became relatively greedy after the US general election.
Data shows that Donald Trump won comfortably, leading most states and even winning the popular vote. It was the first time in two decades that a Republican had achieved that.
Trump is widely seen as a pro-crypto candidate who will implement positive policies for the sector. One of these will be to appoint a pro-crypto head of the Securities and Exchange Commission (SEC) like Hester Pierce, who is popularly known as the “crypto mom”.
The Trump victory has led to a substantial increase in the fear and greed index, which rose to the greed area of 65. In most cases, cryptocurrencies usually rise when investors have a greed attitude.
Fundamentally, AAVE is doing well, with data showing that its total value locked (TVL) jumped by 22% in the last 30 days to over $14.7 billion. It is the biggest player in the DeFi industry in terms of assets after Lido DAO, which has $27 billion in staked assets.
AAVE’s assets mean that the network is still making substantial sums of money. Data shows that it collected $1.08 million in fees in the last 24 hours. According to TokenTerminal, its fees year-to-date have risen to $332 million, a trend that could go on.
Looking ahead, the AAVE token will likely be affected moderately by the upcoming Federal Reserve interest rate decision. In it, the bank is expected to cut interest rates, a move that will push more investors to risky assets like AAVE.
Crypto analysts are bullish on AAVE token. Poseidon, an analyst with over 128k users, noted that the coin had broken a 128-day range, pointing to further gains since there was no key resistance ahead.
850-day range breakout followed by a successful retest. It’s time to start the next leg up, the bigger one.
No resistance zone above us.
Another analyst made the bullish case for AAVE to news that Trump was building a DeFi app on top of the Aave network.
AAVE price analysis
AAVE chart by TradingView
Turning to the daily chart, we see that the AAVE crypto price has been in a strong bull run in the past few months.
It formed a golden cross pattern in January as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other.
The token has now flipped the important resistance level at $178.42, its highest point on September 23 into a support. By moving above that level, AAVE has invalidated a double-top pattern that has been forming.
AAVE has also moved to the weak, stop & resistance level of the Murrey Math Lines. Also, the Relative Strength Index (RSI) and other oscillators like the MACD and the Stochastic have all pointed upwards.
Therefore, the path of the least resistance for the coin is bullish, with the next point to watch being at $225, the extreme overshoot of the math lines. This target is about 20% higher than the current level. A break above that point will see it retest the next psychological point at $300.
This view will become invalid if the price of AAVE drops below the key support at $175, which is a few points below the support at $178. If this happens, the coin will drop to the strong pivot reverse level of the Murrey Math Lines and the neckline of the double-top chart pattern.
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