- AAVE price has jumped in the past few days.
- Celsius paid all its debt to Aave this week.
- The coin has formed a cup and handle pattern.
AAVE price has bounced back in the past few days as Decentralized Finance (DeFi) tokes jump. The token is trading at $72.13, which is about 60% above the lowest level this year. Its total market cap has jumped to over $1 billion, making it one of the biggest coins in the world.
Why is Aave rebounding?
Aave is a leading blockchain project in the DeFi industry. It is an open-source protocol that helps people to borrow money in a few steps. It also lets them earn money by supplying liquidity to its ecosystem.
Aave was originally built using Ethereum’s technology. While Ethereum has higher network fees and slow speeds, most people prefer using its version. Aave also serves other markets like Harmony, Fantom, Polygon, Avalanche, and Arbitrum.
The DeFi industry has gone through numerous challenges in the past few months. Indeed, according to DeFi Llama, the total value locked (TVL) in the industry has dropped from more than $250 billion to about $73 billion.
Aave has suffered as well. At its peak, the network had over $10 billion locked in its ecosystem. Today, the amount has dropped to about $5.3 billion. According to its website, its ecosystem has over $8.8 billion locked.
Learn more about how to buy Aave.
The Aave price rose on Wednesday after Celsius managed to pay all its debt to Aave. According to CoinDesk, it paid $8.4 million worth of USD Coin to Aave. As a result, this closed Celsius’s loan from Aave and freed its collateral. This trade mirrored what it did to Maker last week.
Aave is also rising as investors jump back to its platform. Many investors believe that bigger and stable DeFi platforms will be able to survive the current crisis in the industry. They compare it to the dot com bubble where companies like Google and Amazon thrived.
Aave price prediction
The four-hour chart shows that the Aave coin price formed a cup and handle pattern that is shown in black. This pattern is usually a bullish sign. The coin has moved slightly above the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved slightly above the neutral point.
Therefore, I suspect that the coin will soon have a strong bullish breakout as investors target the key resistance point at $107. This price has an equal distance between the upper and lower sides of the cup and handle pattern.
