Lately, AAVE has been volatile, experiencing a sharp correction from its former highs. Noticeable ups and downs were observed on the chart. Significantly, Stani Kulechov, founder and CEO of Aave, revealed that a user recently tried to purchase AAVE with $50 million in USDT through the Aave interface.
As the order size was unusually large, the interface displayed a warning about extreme slippage and required the user to confirm the risk. The user accepted the warning on a mobile device and proceeded, receiving only 324 AAVE. The CoW Swap routers worked as designed, but it was unfavourable.
Aave plans to return $600K in fees and is exploring stronger safeguards while keeping DeFi open and permissionless.
Meanwhile, with a 5% gain, the AAVE price is trading within the $113.77 range at the time of writing. The daily trading volume has increased by 29.95%, reaching the $370.3 million level. Concurrently, a $550.60K worth of liquidation was observed in the AAVE market during the last 24 hours, as per Coinglass data.
The recent trading pattern of AAVE has revealed that it has the potential to climb higher to the rise to the $115.48 resistance. With a sturdy bullish pressure, the golden cross might unfold, and the price could move up above $117. If the AAVE bears enter, the nearest support level might be found at $111.26. Assuming the downside correction strengthens, the death cross may form, and would gradually take the price below the $109 mark.
AAVE Indicators Turn Green, Hinting at Upside Potential
The technical analysis of AAVE exhibits that the daily Relative Strength Index at 59.34 indicates moderate bullish force. As the value is above the neutral level, 50, the buyers currently have control. However, it is below the overbought zone, leaving enough room to move higher.
Besides, the Bull Bear Power (BBP) of 6.00 suggests strong bullish dominance in the AAVE market. It is pushing the price above its average, reflecting a solid uptrend and strong buying interest. For the strengthening of the momentum even more, the value needs to rise further.
AAVE’s Moving Average Convergence Divergence line is positioned above the signal line, and both are above the zero line, which hints at strong bullish momentum. The market is likely in an uptrend, and as long as the lines remain above zero, it supports continued movement on the upside.
Furthermore, the Chaikin Money Flow indicator located at 0.12 displays moderate buying pressure. With this value, the money is flowing into the asset, showing accumulation. With the CMF rising higher, the bullish move gets stronger, while a move back to 0 would consolidate.
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