Aave Price Up By 7.91% – Time To Buy AAVE?

• Investors looking to buy AAVE will be impressed by its 24-hour price performance
• Aave V3 launch powers Aave’s fundamentals
• Continued Aave Ecosystem expansion

The broader crypto market is witnessing a selloff as crypto bellwether, Bitcoin, slips below the $40k mark once more. However, the price of Aave continues to remain positive, encouraging investors to buy AAVE.

With AAVE being one of the only few large-cap coins to record gains in the last 24 hours, it is important to understand the reason for the gain, to ascertain if this is a good time to buy AAVE. Below, we’ll explore the coin’s price metrics to arrive at an answer.

Aave V3 Launch Powers Aave’s Fundamentals

The biggest news surrounding Aave has been the launch of Aave v3 – an upgrade to the popular lending protocol designed to bolster its functionality.

Announced last month, Aave v3 brings several new features to the Aave ecosystem. The new features include portals, which offer “permit listed” bridge protocols approved by the Aave community to facilitate cross-chain transactions. There’s also a high-efficiency mode (eMode) feature that permits users to extract the most out of their collateral by offering higher borrowing power within an asset category.

Aave’s developers have said that this upgrade will offer improved capital efficiency, optimised security, and better cross-chain functionality. The upgrade has been deployed on multiple blockchains, including Fantom, Polygon, Harmony, and Avalanche – with more integration planned in the future.

Continued Aave Ecosystem Expansion

Aave is also looking to reinforce its ecosystem expansion to offer further value to its users.

Over the past few weeks, Aave has seen a wave of support from several wallet platforms and Web3 integrations – including Zapper, Instadapp, and Paraswap. These integrations are expected to improve the protocol’s accessibility and functionality, creating a strong fundamental base for when the market eventually flips bullish.

With strong numbers powering its ecosystem, we expect to see gains in the AAVE price by the time the market returns to the green.

AAVE Technical Analysis

Currently, AAVE trades at $170.5. This is a jump of 7.91% in the past 24 hours.

The digital asset’s price jump has brought it above most of its moving average (MA) indicators, with AAVE now beating its 10-day MA of $163.80 and 100-day MA of $168.60. However, AAVE has slipped below its 200-day MA of $174.40.

AAVE is trading close to its MA indicators, showing that it needs to consolidate its price more. The same can be said for its 50-day exponential moving average (EMA), which currently stands at $167.90.

Taken from its previous high, AAVE’s 23.6% Fibonacci retracement level stands at $235.50. This should serve as a solid resistance level for the digital asset. However, with the market still dealing with bearish moves, we don’t expect to see AAVE cross that line for a few days.

With its positive moving average convergence divergence (MACD), AAVE is showing a buy signal. Investors can feel confident enough to buy AAVE since the coin’s relative strength index (RSI) of 57.52 shows that it isn’t overbought yet.

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