Cryptocurrency

AAVE Price Forecast: What Could Happen in the Coming Days?

Bitcoin and altcoin bulls performed pretty badly last week. While many cryptocurrencies are trying to recover, there was no crypto that showed a big rise, except for some altcoins. However, this is not the case for AAVE price estimation. The 27th largest cryptocurrency has recovered after falling 16% weekly and is quickly trading above $250 at the time of writing. For this step, a question mark remains for investors. Will AAVE’s bearish run come to an end soon? Accompanied by expert analyst “Lavina Daryanani”, we answer this question in 3 elements.

(mtag101702)

We start with the first metric for AAVE price estimation

(mtag101702)

When the measure of tokens that change address on a certain date is observed, Cryptocoin. com, it has been observed that a significant number of previously idle AAVE tokens have been moving in the middle of addresses since July 10. At the same time, as the chart below shows, the spikes essentially signal that early investors are selling their tokens, which has contributed to AAVE’s recent price drop. According to the analyst, if the trend continues, the price of AAVE may continue to gain downward momentum.

(mtag101702)

The bond between market cap and transfer volumes

(mtag101702)

Second, the NVT ratio shows another trend. A low rate means that the network cost cannot keep up with the increasing network usage. In addition, such a move often represents a bearish signal. Even though this pricey top moves flawlessly at the moment, a change in trend could not be confirmed for two main reasons, according to the analyst. The first of these is due to the fact that the current ratio (33.7) is not close to its peak on June 6 (95.1). The second comes when looking at the behavior of the last curve, taking into account that the resulting rise will soon turn itself into a decline in the next few days. However, if the current rise continues, a parallel rise in price can be expected. At the same time, after taking note of the two scenarios we mentioned, the possibility of a bear phase extension now seems more plausible than a change in trend, according to the analyst.

(mtag101702)

Measurement of entry and exit to the stock exchanges

(mtag101702)

Additionally, the stock market entry volume also shows that people are parting ways with cryptocurrencies. In this case, AAVE is not a very good sign for a price claim, according to the analyst. At the same time, as indicated by Glassnode’s chart, the total number of tokens transferred to exchanges has been increasing over the past few days. For example, only 10,500 tokens were transferred to exchange wallets on July 10, while one-to-one currently costs 48,600. Finally, DeFiPulse’s chart indicates that TVL in AAVE is not gaining momentum in this state. The ups and downs are pretty inconsistent. For this reason, AAVE has been losing its dominance in the DeFi space lately, in a controversial form according to the analyst. Keeping this factor and all the metric signals mentioned above in mind, it can be concluded that AAVE will not witness a random relief rally in the next few days, as the analyst stated.

(mtag101702)

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button