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  • AAVE price prediction remains bearish below the $376 level, and it has chances of dropping to the $346 support level.
  • The 50 days EMA (exponential moving average – red line) supports a selling trend below $400.
  • Forex trading market participants may look for a sell trade below the $375 level with a target of $346.

On Wednesday, the AAVE/USD pair is trading sharply bearish, falling below a strong triple bottom support level of $375. The day before, AAVE/USD closed at $378.56 after placing a high of $413.96 and a low of $370.34. AAVE price prediction remains bearish below the $376 level, and it has chances of dropping until the $346 support level. 

If you are interested in trading AAVE/USD with forex robots, check out our guide.

AAVE/USD came under high pressure despite the news that Anchorage’s regulated cryptocurrency custody firm was offering blockchain governance voting services. For this purpose, it has started with the decentralized finance major, Aave.

The most popular DeFi application is Aave.

One of the most popular DeFi applications is Aave, which allows users to lend and borrow cryptocurrencies. The decentralized financial systems (DeFi) aim to create an alternative to the traditional financial system by being open, transparent, and available to anyone accessing the internet. The rise in the number of users and volume of transactions on the Aave platform tends to raise the price of its token AAVE.

The recent announcement from Anchorage means that now institutions and token holders can use governance from the Anchorage portal. That’s to participate in on-chain governance decisions critical to the Aave lending protocol. According to the company, the system will use a separate voting key to ensure the safety of digital assets.

Communities propose governance tokens to vote on

Many venture firms and crypto funds have been active in communities proposing changes to the protocol by using their governance tokens to vote. However, moving cryptocurrencies from cold or offline storage to online or hot wallets comes with risks. 

The process of bringing offline assets to on-chain has been viewed as risky by many institutions. Despite the risks involved in the process, many institutions have shown an interest in participating in changes to protocol by proposing upgrades and setting risk parameters.

The collaboration of Anchorage with Aave will enable institutional DeFi markets to have secure governance participation without the risk of exposing the keys themselves. 

It means the protocols will be provided with two keys, one for holding the token and the other for using while voting. This generalized capability that Anchorage will provide to Aave governance will attract more users to its platform. Moreover, they can participate in critical protocol-level decisions without being exposed.

Since the announcement of the collaboration between Anchorage and Aave, the AAVE/USD token has been rising. However, on Wednesday, it faced some resistance and reversed its course to the downside.

AAVE Price Prediction
AAVE/USD 4-Hour Chart

AAVE Price Prediction – Daily Technical Levels

Support Resistance

361.28 404.90

344.00 431.24

317.66 448.52

Pivot Point: 387.62

AAVE Price Prediction – Daily Technical Analysis: Symmetrical Triangle Breakout

AAVE price prediction remains bearish below the $376 level, and it has chances of dropping to the $346 support level. The AAVE pair has violated the double bottom support level of $375. Therefore, the closing of candles below this level suggests a strong selling bias.

On the bearish side, the AAVE/USD pair may find support at the $345 level, and a further bearish breakout could extend the selling trend to $321. Furthermore, the leading oscillator indicator is still holding in a sell zone, and the 50 day EMA (exponential moving average – red line) supports a selling trend.

Secondly, the recent 4-hour candle is a bearish engulfing candle, demonstrating a selling bias among investors. The immediate resistance prevails at $375, $390, and $416 levels on the bullish side.

Forex trading market participants may look for a sell trade below the $375 level with a target of $346. Alternatively, buying trades can be taken above the $345 support level to target $375 and $390. All the best!

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