Aave fell for the second consecutive week, with the performance of most Altcoins reflected, because the tariff risks remained a concern.
Aave (Aave) Token fell to a low point of $ 196.4, the lowest level since November 25, and is currently 50% below the highest level this year.
Token has a few catalysts who can push it to its highest peak of $ 666, an increase of 170% from the current level.
First, there are signs of increased accumulation by investors. Coinglass data shows that the Aave balances on exchanges have crashed to the lowest level in years. This balances moved to 2.2 million on Friday, compared to 2.67 million in December.
A significant fall in the exchange balance suggests that investors hold their tokens instead of selling, which is a positive indicator. Rising balances, on the other hand, often indicate sales pressure, because investors move their participations from self -coasts to exchanges to sell.
Secondly, Aave is still the largest credit and loan protocol in the crypto industry, with around $ 20 billion in assets. It is also one of the most profitable because the annual reimbursements have risen to more than $ 721 million. Token -terminal Data shows that this year it has made more than $ 103 million in reimbursements.
Aave in particular successfully handled more than $ 201 million in liquidations as the cryptocurrency prices fell. Despite the substantial liquidations, no uncadulent debts were built into Aave and the total poor debts fell by 2.7%.
The Aave network is also expanding. More than 440 million USDS -Stablecoins are deposited in the network. In addition, Aave has moved to the base, the blockchain network that is owned by Coinbase, and there is a mood to activate Linea.
A price forecast
The Aave price has strong technical indicators that suggest a potential rally in the coming months. It has formed a cup and handle pattern, with the upper limit at $ 400. The recent pullback is part of the handle formation, which is usually followed by a strong rebound.
Aave has also formed a small hammer candlestick pattern, indicating that the handle phase can end, which can lead to further profit. The depth of the cup is around 90% and measuring from the same distance to the upper limit suggests that the currency could rise to $ 765 in the long term, an increase of 200% compared to its current level.
