The RSI remains weak, which indicates bassist impulse.
Aave should close at the top of $ 312 so as not to suffer a deeper correction.
AAVE (AAVE), the token of the main decentralized platform of loans from Ethereum, exceeded the resistance of $ 335 on August 14.
However, it failed to stay above that level and Its price collapsed along with Bitcoin (BTC) and almost the entire digital asset market.
At the time of the publication of this note, AAVE is negotiated at $ 288, which represents a drop of 14.5 % compared to the local maximum of $ 339 reached last week.
Jainam Mehta, financial market analyst, holds that This price correction is explained because, after the rupture of an ascending channelon August 12, there was a “rapid wave of disappointment, confirmed by 3.3 million dollars in net exits on August 18”.
This means that many investors who operated leverage (that is, with loans from exchanges to bet the price up or down) liquidated their positions.
The specialist shared a graph in which the failed breakdown of the ascending channel (green line) is seen. At the bottom, The relative force index (RSI) is close to the over -sales territoryindicating that the sale pressure remains greater than that of purchase.
For the analyst, AAVE could suffer deeper pricing correction unless the price closes decisively above 312 dollars (straight blue line), the previous resistance zone. If the price remains above that level, confirms a solid floor; otherwise, I could suffer a deeper correction towards the range between 275 and 280 dollars. “Alcistas must defend 285 dollars at daily closure to avoid a greater liquidity search for the area of 268 dollars, lasting at the end of June,” adds Mehta.
However, he clarifies that the whales were accumulating to an Aave below $ 300, indicating that they have positive long -term perspectives and that, anticipating future protocol developments, generate a solid support base in the market.
On this point, the author explains that the AAVE protocol crosses an important transition cycle with the next launch of version V4, backed by a development subsidy of 12 million dollars, which seeks to unify the liquidity between chains and increase the collection of commissions from 2025.
Besides, its institutional loan alliance with Krakenscheduled for the fourth quarter of 2025, could generate a new source of recurring income.
Apart from these developments, Mehta also clarifies that it will be essential that the macroeconomic obstacles that slow down the appetite disappear, such as the monetary policy that the United States Federal Reserve (Fed) is carrying out.
This is because the interest rate is maintained between 4.25 and 4.50%. As Cryptonoticia explained, when the types are high, the cost of financing increases and, consequently, the liquidity in the system is reduced. In these contexts, investors place their holdings mostly in cash or treasure bonds.
On the contrary, when lowering the rate, the cost of indebtedness decreases and the appetite is reactivated by the risk of investors, who seek greater yields in more volatile assets, such as cryptocurrencies.
