- AAVE’s effort to break above the flag trendline may face strong selling pressure.
- Aave is down 0.25% in the last 24 hours.
AAVE’s bullish momentum may be running out of steam. The price of AAVE has more than doubled in a month. After touching a low of $45.60 on June 18 and a high of about $95.50 on July 15 this year, AAVE has gained over 103 percent. However, the token’s steep upward retracement move has moved its price closer to the level that generated similarly violent corrections since early June.
Bears Around the Corner
A “bear flag,” a bearish continuation pattern, has formed when AAVE has tested an ascending trendline resistance. For example, the prior test of the trendline on July 9 resulted in a 20% decline. Similarly, on June 24, a similar effort lowered the price of AAVE by over 30%.
Because of this distribution pattern, AAVE’s continuous effort to break above the flag trendline may face strong selling pressure. The flag’s lower trendline around $67.75 might serve as AAVE/downside USD’s objective by September if a reversal occurs. A price floor in May that was preceding a 60% comeback move served as temporary support at $76.30 for the time being.
Since AAVE announced its plans to introduce GHO, a dollar-pegged stablecoin, the price of AAVE has increased by more than half.
When the Aave Companies, the company behind the lending protocol, asked its community to vote on an “overcollateralized” stablecoin proposal on July 7, the response was overwhelming. After GHO’s announcement, AAVE’s price jumped by more than 53%, fueled by expectations that the DeFi token’s adoption would increase.
According to CMC, the Aave price today is $89.55 USD with a 24-hour trading volume of $384,581,456 USD. Aave is down 0.25% in the last 24 hours.
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