Can AAVE Repeat The Move To $65 As This Technical Indicator Shows…

  • The technical outlook indicated a recovery of AAVE due to the state of the RSI
  • The hosts over the past six months seemed to have struck a balance but AAVE may be heading lower

Like their counterparts, non-custodial liquidity protocols, avi2022 is slowly ending. According to CoinMarketCap, the value of AAVE on December 31 was approximately $52.

This was in contrast to the increase a month earlier. Technically, the Relative Strength Index (AAVE) disappeared into the fall territory between the last day of last year and January 1, 2023.


how many You can get AAVEs for as little as $1?


At press time, the RSI has pulled away from the decline, rising to 40.14. This was a similar trend that I followed when the price reached $65 on December 5th. This begs the question: will AAVE be able to recreate such a performance at the start of the new year?

January trend opposes movement

The Directional Movement Index (DMI) was on the mixed side of a potential upside. This was because the indices from DMI seemed to be consistent with the negative DMI trend (red).

At the time of writing, -DMI is high at 24.90. At the other end, +DMI (in green) dropped to 15.90. The implication of this divergence was that AAVE may struggle to gain the upside in the short term.

In addition, the Average Directional Index (ADX) strengthened the DMI indicator. This was because the ADX (yellow) was 27.07. This subsequent situation indicates that the AAVE value will most likely follow a downtrend.

Source: TradingView

True to its reputation in the decentralized finance (DeFi) ecosystem, AAVE has not succumbed to pressure. to me Devi LamaAAVE Total Value Locked (TVL) has lost 1.96% of its value in the last 30 days.

That left TVL protocol at $3.72 billion. The downgrade meant that not too many investors were willing to lock their assets in AAVE-backed DeFi contracts.


Read the AAVE 2023-24 price forecast


In terms of price impact, the situation has shown that there is not much room for growth. Therefore, investors can expect less of a price increase in the short term.

The total value of AAVE DeFi locked in

Source: DeFi Llama

What did the AAVE investors have left?

Data on the chain from Santiment open That AAVE was able to generate more profits from its holders than it was in July 2022. This is due to the indices from the market capitalization to realized value ratio (MVRV) which was -40.14%.

This indicates that AAVE was not necessarily undervalued and that a price correction may not be required anytime soon.

AAVE price and market value in relation to value realized

Source: feeling

At the time of writing, AAVE is trading at $52.93. However, stats and technical forecasts showed more downside to the recovery.

Leave a Reply

Your email address will not be published. Required fields are marked *