Aave price has been in a strong bullish trend in the past few weeks as demand for blue-chip DeFi tokens has risen. It surged to a high of $83, which was about 25% above the lowest level this month. As a result, its total market cap has grown to more than $1.15 billion, making it one of the biggest DeFi tokens in the world. So, should you buy Aave?
Is Aave a good buy?
Aave is one of the biggest DeFi protocols in the world. It is a non-custodial platform that makes it possible for people to borrow and provide liquidity. While Aave is primarily an Ethereum platform, it also operates in other chains like Avalanche, Optimism, Polygon, Arbitrum, Fantom, and Harmony.
According to DeFi Llama, Aave has a total value locked (TVL) of more than $5.13 billion. Including the total borrowed, staking, and pool2, the TVL is over $8.22 billion. This is a substantial amount since Aave was started just a few years ago.
The most recent crypto news was that Justin Sun decided to withdraw about $100 million worth of USDT tokens from the network. This withdrawal was likely connected to a recent ba of Justin Sun for dealing with Tornado Cash. Tornado was sanctioned by the American government because of its privacy features.
Analysts believe that Aave is a good coin to invest for two main reasons. First, the recent crypto crash has stress-tested the network to the core. This means that it has a higher probability of survival compared to other smaller platforms.
Second, the upcoming yield-generation stablecoin will likely be a positive catalyst for the network. The coin, known as GHO, will be used to improve features provided by the lending platform. In addition, it will be offered to users to allow them to mint the token against supplied collateral.
Aave price prediction
The daily chart shows that the AAVE price has been in a strong bullish trend in the past few weeks. As it rose, it managed to move above the important resistance level at $80.43, which was the highest level since October 6.
Aave has moved above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved above the overbought level. Therefore, Aace will likely continue rising as bulls target the next psychological level at $100. A drop below the support at $80 will invalidate the bullish view.