Aave has had its ups and downs over the past two months. However, during this period, the price action remained well below $50. Aave also dropped significantly in early June. However, he has recovered and has now recovered several key support areas. Here are the highlights:
AAVE has broken through two resistance zones in the past few days.
The coin surged above $61.25 and also broke above $70.56.
Aave has also posted gains of 20% in the past 24 hours.
Data Source: TradingView
Why is Aave’s momentum strong?
Although in general the crypto market has rebounded, Aave has just taken off. Aggregate gains over a 7-day period are now 17%, one of the highest of the top 50 cryptocurrencies. But the bullish breakout seems to have a lot of room to maneuver.
The coin is now above two critical support areas. We expect this run to continue and eventually settle above $80. After that, Aave will probably back down slightly. But it won’t lose the $60 support, at least not any time soon. The surge of the Aave is also part of a context of improving market conditions.
Investors seem to be growing more confident that the US Fed and other major central banks are serious about fighting inflation. But despite this, there are still several economic risks at play that could sip capital from the crypto market.
For now, it looks like Aave is recouping some of the major losses from the past week. The coin will however need to break above $100 to erase the June slump.
Can Aave reach $100?
At the end of May, AAVE was well above $100. But market weakness has put so much pressure on the DeFi token.
We don’t see it making $100 back in the short term. In fact, a practical trading range over the next few weeks will be between $60 and $80.