Aave, also known as AAVE, is experiencing a reversal in its course as it rebounds from the 200-Day Exponential Moving Average (EMA) and shows signs of upward movement. Currently, the price of AAVE stands at $0.056, having experienced an intraday drop of 12.31%.
Despite this drop, Aave has gained traction and started the week on a positive note. The buyers have shown confidence in the cryptocurrency as it has maintained itself above the 200-Day EMA in recent sessions.
However, Aave is currently facing challenges in breaking out of a short-term correction phase. Since the beginning of the financial year 2024, it has been under the control of bears and has been following a short-term negative trend.
In January, the price of AAVE reversed its course and turned negative in the short term. It experienced a sharp decline after being rejected near the round level of $125 and breaking below the 20-Day EMA.
Attempts were made by buyers to halt the downfall near the 50-Day EMA, but they were unable to withstand the selling pressure from upper supply zones, resulting in a break below. The 200-Day EMA then acted as a major support zone, leading to a bounce back in price after a small consolidation period.
In terms of volume analysis, Aave received $138 Million in volume over the past 24 hours, representing a 56% increase compared to the previous day. It currently has a market capitalization of $1.30 Billion and ranks 57th in the overall crypto market. It has a circulating supply of 14.732 Million tokens out of a total supply of 16 Million.
Looking at the short-term outlook, Aave has shown a rebound from the 200-Day EMA, indicating the presence of buyers at lower levels. If the price breaks below the 200-Day EMA and the round level of $80, a fresh downside move may occur. On the other hand, the 50-Day EMA may act as resistance and push the price to lower levels. A breakout above the 50-Day EMA could bring hope for buyers and result in the end of the correction phase and a resumption of upward movement.
According to analysts, in a positive scenario, AAVE could reach $100 by the end of February 2024 if it rises above the 50-Day EMA. In a more bearish view, the price could fall to $80 if it breaks below the 200-Day EMA.
Looking further ahead, the price forecast for 2024 suggests that the AAVE token price could reach a high of $128.6, indicating a potential gain of over 44.6%. However, a bearish outlook predicts a price of $108 by the end of the year.
By 2025, the AAVE price may reach a high of $163.12, while the minimum price it could rise to is $125.30.
It is important to note that the views and opinions stated in this article are for informational purposes only and do not constitute financial or investment advice. Investing or trading in cryptocurrencies involves a risk of financial loss.