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  • Aave has emerged as the top-performing asset among all DeFi projects in the cryptocurrency industry.
  • AAVE/USD is struggling to find support above $130 following a rejection at $140.
  • The IOMAP model reveals that AAVE has a smooth ride for gains above $140, likely to invalidate the bearish outlook.

The last few months of 2020 were extremely yielding. Bitcoin almost hit a record high at $42,000 while the rest of the cryptocurrencies grew significantly. Aave soared by a colossal 6,372%, topping decentralized finance digital assets (DeFi) year-over-year.

Aave outperforms other DeFi projects

According to Messari, a renowned cryptocurrency analysis platform, Aave almost tripled Yearn.Finance growth in 2020, which came second after soaring 2,729%. THORChain came third following a 1,700% spike ahead of UMA with 906%. Other great performers in the DeFi sector include Loopring at 690%, Gnosis at 575% and the token with the largest market cap in the ecosystem, Synthetix at 499%.

DeFi top performers in 2020

DeFi top performers in 2020

In the meantime, Aave is trading at $137 after hitting a barrier at $140. The goal among the bulls is to establish higher support, preferably above $130. If push comes to shove and losses stretch out significantly, AAVE price would test the 50 Simple Moving Average for support around $120.

AAVE/USD 4-hour chart

AAVE/USD 4-hour chart

The TD Sequential indicator has just presented a sell signal on the 4-hour chart, adding credence to the pessimistic outlook. The bearish formation developed as a green-nine candlestick anticipating a one to four daily candlesticks correction.

A red two candlestick trading below a preceding red-one candle could serve as confirmation that AAVE is poised to drop further.

AAVE/USD 4-hour chart

AAVE/USD 4-hour chart

On the other hand, IntoTheBlock’s IOMAP reveals the lack of a substantial resistance ahead of Aave. This shows that the DeFi token could rally to new yearly highs beyond $140 if the tailwind behind it surges.

AAVE IOMAP chart

AAVE IOMAP chart

On the downside, Aave is sitting on areas with immense support. The most robust anchor zone runs from $117 to $121. Here, 1,600 addresses are currently profiting from the approximately 592,000 AAVE previously bought. It will be a daunting task for the bears to slice through this support area, which may invalidate the pessimistic outlook.