Aave Coin Price Up 19% – Time to Buy AAVE Coin?

Most people buy AAVE to get exposure to the decentralized finance (DeFi) sector. With an impressive price performance over the past 24 hours, it’s understandable why investors might want to take advantage of the rally to buy AAVE. However, it’s important to do your research and see whether this is the best time for you to lock in a price.

Below, we’ll look into AAVE and how the asset has been performing. This way, you know better whether the time is right to make an investment or not.

Aave Price Movements: Market Rally Pulls AAVE From the Brink

AAVE has done pretty well in 2021. The asset started the year trading at $91.78, and it rose to successive highs, peaking at $663.75.

The asset eventually saw its value drop as the market downturn came, although AAVE’s drop was much later than many other large-cap assets. AAVE eventually dropped to $210.04 on May 23, but the asset found a new bottom at $168.19 on June 22.

The downturn has provided a consolidation opportunity for AAVE, however. The asset is currently trading at $246.42 – a 19 percent jump in the past 24 hours and a 46.5 percent jump from its bottom.

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Aave: DeFi’s Juggernaut

The past year has seen an explosion of growth in DeFi – even more impressive than traditional crypto. Data from DeFi Pulse shows that the total assets locked in DeFi are valued at $53.8 billion. That’s a distance off its all-time high of $88.4 billion, but it’s way more impressive than the $1.8 billion that the industry had in July 2020.

However, DeFi’s explosion has been largely concentrated among a few protocols that are really making waves. These protocols are known as the “DeFi blue chips,” and none is as valuable as Aave.

Aave is a lending service that currently ranks as the largest DeFi protocol. With $10.5 billion in assets locked, Aave holds almost a fifth of all assets in DeFi.

Built on the Ethereum protocol, Aave makes it easy for people to borrow and lend cryptocurrencies without having to go through the arduous processes involved with centralized loan managers. Lenders earn interest, borrowers pay interest.

AAVE is Aave’s protocol token. It is mostly used as a form of collateral, allowing holders to increase their borrowing limits. Users who borrow AAVE can also get discounts on fees if they post it as collateral.

The asset is available on different exchanges, so you can easily buy AAVE and trade it.

AAVE Technical and Fundamental Analysis

AVE’s fundamentals are strong so far. The asset has a relative strength index (RSI) of 45.58, showing that it is still underbought. However, considering that its RSI stood at 31.51 on June 26, it appears that many investors have rushed to buy AAVE due to the price gains.

Of course, the asset’s current RSI remains impressive.

AAVE’s 20-day moving average (MA) also stands at $252.88. With the asset’s current price movement, there is every reason to believe that it will cross the threshold before the day ends. If it does, AAVE could be set up for a blogger uptrend.

As for the asset’s fundamentals, the Aave platform is gearing up for some significant upgrades. This month, Aave co-founder Stani Kulechov confirmed in an interview that the platform will be upgrading as they hope to keep expanding in an increasingly complex DeFi ecosystem.

The first upgrade will be to develop a governance bridge that will allow layer-1 users to vote on layer-2 implementations. This will make away for cross-chain decentralized decision making and allow Aave to collect more opinions on how best to serve customers.

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