Aave managed to outperform the vast majority of the crypto sector as its price was less affected by the market downturn caused by Bitcoin’s drop below $30,000
Aave is a decentralised finance protocol that is created with the idea to allow people to lend and borrow crypto. Aave, as well as its predecessor ETHLend, were both founded by Stani Kulechov. The cryptocurrency has picked up market traction due to strong fundamentals, making it one of the top DeFi cryptocurrencies.
Aave’s overall outlook is exceptionally bullish, mostly due to its extraordinary fundamentals. The cryptocurrency managed to post week-over-week gains of 20.74. When compared to other cryptocurrencies, BTC posted a loss of 16.73%, while ETH managed to lose 2.39% over the same period.
At the time of writing, Aave is trading for $183.50, representing a price increase of 101.36% compared to the previous month’s value.
Aave has managed to stay relatively healthy during the recent price downturn. The cryptocurrency has seemingly created a head and shoulders pattern on the 4-hour chart, which is considered a fairly bearish indicator. However, its recent gains (or reduced losses) heavily outperformed the rest of the top cryptocurrencies, which (in most cases) recorded double-digit percentage losses. There are, however, a couple more cryptocurrencies on par with Aave’s downtrend resilience, most of them coming from the DeFi sector.
Aave faces a strong resistance zone slightly below the $200 mark, while it can find strong support in the 50-day EMA as well as just above $150.
AAVE/USD 4-hour price chart. Source: TradingView
AAVE’s RSI on the 4-hour time frame slowly descended to the current mid-range value of 50.30.
AAVE/USD 1-hour chart. Source: TradingView
Aave’s hourly time-frame shows us how bulls took over the market yet again as they bounced from the aforementioned $150 support level. The cryptocurrency also established short-term support with its 50-hour EMA, creating a new opportunity for upside. However, a break above the $200 level is most likely unachievable at the moment, all due to the overall crypto market conditions.