The AAVE price suffered a considerable decline like the vast majority of cryptocurrency over the past two weeks. It fell from a high of around $650 in mid-May to a recent low of $185 on June 25. That represents a considerable decline of around 70% from those dizzying highs. AAVE does seem to be making a recovery however and has appreciated by at least 60% from the June 25 low to reach $323 over the past 24 hours. There seem to be more buyers in the market as the AAVE price has been on a persistent uptrend since the low reached two weeks ago.
Short Term Forecast For AAVE price: Is $400 possible soon?
After a rather slow start to the year, the DeFi crypto AAVE saw a meteoric rise over April and May with the price climbing to a record-busting $650 in mid May. We’ve already indicated that the drop was also pretty steep but a recovery is definitely underway. Buyers seem to have entered the market in a big way after the Kune 25 crash and there seems to be considerable momentum at the $300+ price mark. The next resistance level for AAVE would theoretically be the $375 mark which if broken, could signify another push up to the $400 mark.
However, this bullish thesis would be invalidated if a retracement occurs and AAVE falls below the $300 level. That could signify a drop all the way down to the $250 level which is the next level of support. However, that scenario looks unlikely, due to the fact that the AAVE price has been on a constant rise since June 25 and appears to be well supported at the $300 level.
AAVE Long Term Forecast: A Good Buy For The Future
There seems to be considerable promise with the AAVE protocol. It is not dissimilar to Yearn Finance (YFI) or Compound (COMP) which we covered yesterday here. There are some pretty wild predictions for the AAVE price over the next few months with some bullish analysts expecting the price to reach $1000 by the end of the year. A more sober prediction would see the price rise by 100% from now to around the $600 level by December 2020. This would still present a considerable gain when compared to the start of the year.
The AAVE price is expected to rise to the $900 level by end 2022 and reach the $1200 mark by the end of 2025. The latter seems to be a fairly conservative prediction considering the current price and the expected explosion in the DeFi markets over the next years. It does seem quite certain that AAVE is a good bet for a long term investment though.
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Gerald Fenech
