Aave Price Prediction: AAVE Down 6% – DeFi's Next Worst Performer?

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AAVE price rose an impressive 70% from lows around $47.2 to highs above $80 between June 16 and July 14. This rally saw Aave break above key resistance levels. However, the recent retracement below the same crucial support levels points to a continuation of the ongoing correction made worse by the current market crash.

Nevertheless, the price of the DeFi token recently rallied 13% in a recovery that halted at the moving averages. This rise in the price of AAVE was attributed to the recent development update on the network. The Aave development team updated its users on the GHO Stability Module in an August 11 post on the project’s official website.

According to the update, the GHO Stability Module (GSM) and GSM codebase 47 were set to undergo “several security audits from several DAO and external service providers.” These included SigmaPrime for a security audit, an independent third-party security auditor, BGD Labs for a security review, and Certora for formal verification.

Have a stable weekend! The GSM code is public. Read more:https://t.co/d8eD74QJFJ
— Aave Labs (@aave) August 11, 2023

The team also called on “the community to inspect the codebase and provide any security-related issues through our appropriate channels.”

However, the approximately 16% declines recorded since then have confused investors.

Will AAVE Record Further Losses To $47?

Aave price action between mid-June and mid-July displayed an impressive recovery that drove the altcoin above critical levels, including the 50-day, the 100-day SMA, and the 200-day simple moving averages (SMAs).

Usually, asset prices tend to deviate from key support levels before returning to the zones to establish a launching pad. For Aave, falling back below the price range defined by the SMAs could see it revisit the $50 psychological level. In a likely move, the token could tag the $47.2 swing-low to complete the inverted V-shaped retracement.

If this happens, it would represent a 16% drop from the current levels. The Relative Strength Index (RSI) position in the negative region and the downward movement of the Moving Average Convergence Divergence (MACD) indicator supported such a correction. The price strength a29 suggested that the price was firmly in the hands of the bears.

Also, note that the price had sent a call to sell Aave on the daily chart. This was a death cross on Thursday when the 50-day SMA crossed below the 200-day SMA, suggesting that the market conditions had flipped in favor of the downside.

AAVE/USD Daily Chart

AAVE price chart - August 18 — TradingView Chart: Aave/USD

On the upside, a retest of either of the demand zones mentioned above would allow buyers to buy into AAVE at a discount and trigger an uptrend that may push the price higher.

The resulting upswing would likely propel the token back to confront renaissance from the $60 psychological level and the SMAs between the $64 and $69 supplier congestion zone.

Overcoming this hurdle would open the path to the $80 psychological level or the $87 swing high. Such a move would constitute a 56% ascent from the current levels.

The technical analysis above suggested that Aave holders should be worried about the ongoing correction as they could be in for more losses. As such, those seeking alternative places to put their money can look into Sonik, a new project that has launched its presale and has the potential to make good returns for investors.

AAVE Alternatives

SONIK is a new meme coin, boasting itself as the inaugural ‘stake-2-speed’ cryptocurrency. At its present presale stage, it is available for grabs at $0.000014. Holders of SONIK tokens are granted the capability to stake their holdings through Ethereum-based smart contracts.

The presale aspires to achieve a market capitalization of $100 million, following its initial funding target of $2 million. The Sonik project, accompanied by its native token, is poised for a surge in popularity as a meme-oriented digital asset. It offers staking benefits to its holders and presents distinctive use cases that position it as a potential enduring investment option.

While meme coins like Pepe have attracted attention with their generous rewards, the multifaceted functionalities of Sonik render it an enticing prospect for sustained engagement.

SONIK’s price trajectory is poised for a swift upward trajectory in the upcoming months because meme tokens often attract significant attention following their debut. With a diminishing circulating supply and a notable increase in demand, the potential of the SONIK token attaining a $100 million market capitalization appears to be a feasible and attainable milestone on the horizon.

The project has already garnered $147,0000 within just a few hours of its presale.