Aave's AAVE token rose 3.91% over the past 24 hours to $72.88, recovering some ground after a 1.11% pullback this past week. The gains bring AAVE back toward the $75 resistance level that has capped upside moves through most of July.
The recent consolidation follows an impressive 13.35% rally in July. However, AAVE has struggled to gain momentum above $75 as crypto sentiment turned cautious. Traders seem keen to book profits following the powerful surge off June lows.
In our analysis, we'll examine Aave's latest price action, on-chain data, sentiment, and market outlook. Key highlights include:
- AAVE stabilizing above $70 support after pulling back from $75 resistance
- Trading volume declining as consolidation sets in
- Aave protocol metrics remain strong despite AAVE's cooldown
- Macro conditions determining short-term price action
- Resistance at $75, with breakout needed to target $90
Is Aave Finding a Floor After Its Recent Weakness?
Aave's AAVE token surged higher through most of July, rallying from under $60 to reach the $75 area earlier this month. However, AAVE met selling pressure as it tested that resistance zone, with bulls unable to sustain upward momentum.
This pulled AAVE back below its 10-day moving average, which had provided solid support during its July uptrend. However, the cryptocurrency found buyers near $70 and has since bounced.
Trading activity declined in tandem with the pullback, reflecting caution among bulls at current levels. However, on-chain data remains strong - Aave protocol usage and revenues are up significantly in 2023.
For AAVE to resume its uptrend, bulls need to reclaim $75 convincingly. This would open the door for a continued rally targeting the $90 horizontal resistance level next.
Can Aave Revisit Its All-Time High This Cycle?
Aave hit an all-time high of $666 in early May 2021, driven by explosive interest in DeFi protocols during last year's bull run. However, the 2022 bear market hit AAVE hard, driving it as low as $49 in late June 2022.
While crypto conditions have improved off the lows, sentiment remains far from the greed and euphoria of 2021. For AAVE to reclaim its $666 peak this cycle seems unlikely without a dramatic improvement in investor appetite.
However, if $75 resistance gives way, AAVE regaining its 2022 high near $450 comes into play. This aligns with the upper end of AAVE's historical trading range.
For now, traders should monitor if AAVE can break its recent funk and get back above $75. That would suggest bulls are still in control of the uptrend.
Should I Buy Aave After its Recent Pullback?
Aave looks attractive following its cooldown back toward the $70 support zone. This area has reliably held as support throughout 2022, making it a solid level to consider accumulating.
However, traders may want to wait for a break back above $73 before going long. That would provide greater confidence that the pullback is over and upside momentum will resume.
Long-term investors could buy around $70. While volatility persists, Aave remains a blue-chip DeFi protocol with strong project fundamentals and development activity. Significant discounted upside exists if the crypto bull market returns.
How High Can Aave Go Long-Term?
Given Aave's entrenched position as a leading DeFi lending protocol, a return to its all-time high around $650 seems feasible long-term. This would require around a 9x gain from current levels.
However, capturing AAVE's full potential relies on DeFi continuing to gain mainstream traction and crypto adoption accelerating globally. If this materializes over the coming years, AAVE could rise significantly higher than $650. But have patience and stick to a long-term outlook when investing in crypto.