AAVE: Aave is a decentralised finance protocol that allows people to lend and borrow crypto. Lenders earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity. It provides holders with discounted fees on the platform, and it also serves as a governance token.
Aave (which means “ghost” in Finnish) was originally known as ETHLend when it launched in Nov 2017, but was later rebranded as Aave in Sep 2018.
AAVE has a market cap of $2.41Bn as of date, while the total crypto market cap stands at $3.01T.
On the weekly chart, AAVE formed a recent low of $143.63, hit a triple bottom level, and bounced, showing support in the lower zone and buying interest. On the downside, strong support is seen at the $144.30 level.
Also Read: Cross-Chain Liquidity for L1 and L2 Explained
Technical Chart of AAVE
On the weekly chart, AAVE price is trading below its Simple Moving Average (14 & 21 periods) levels of $162.52 and $165.94, indicating minor resistance in the coming sessions.
On the weekly chart, the Relative Strength Index (RSI) is at 38.67 and the Stochastic is at 12.81, indicating an oversold zone and a potential reversal.
Support and Resistance Levels
| Support 2 | Support 1 | Asset (Price) | Resistance 1 | Resistance 2 |
| $132.75 | $144.30 | Aave ($157.87) | $169.10 | $188.40 |
Above $188.40, with the possibility of hitting $211 levels.
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