Aave (AAVE) Price Analysis: AAVEUSD Surges 45% Higher, What's Next?

Aave (AAVE) price surged more than 45% in the past ten days. It holds above the short-term (21 and 55 EMA) and above the long-term moving average.

Aave, a Decentralized Finance (DeFi) lending platform, is built on the Ethereum blockchain. It offers a non-custodial liquidity protocol that enables users to earn interest on their crypto assets, borrow against them, and build applications on the platform.

Aave boasts a wide range of features, including a lending marketplace with 17 different cryptocurrencies available for lending and borrowing. The platform also offers liquidity pools, allowing users to deposit cryptocurrency as collateral and borrow other crypto assets up to a certain percentage of the collateral value.

Moreover, Aave provides Flash Loans, which enable users to borrow any available assets without putting up any collateral. These loans must be fully repaid within a single block transaction, making them ideal for traders and arbitrageurs.

The loan-to-value (”LTV”) ratio on Aave determines the maximum amount of assets that can be borrowed with a specific collateral. The maximum borrowing capacity is also influenced by the value of the assets supplied and the available liquidity in the lending pool.

AAVEUSD has seen a strong rally of over 45% in the past ten days. It has managed to hold above the short-term (21 and 55 EMA) and the long-term moving average (200 EMA). The pair has encountered a high of $112.20 and is currently trading at $107.83.

The bullish invalidation can occur if the pair closes below $70. On the lower side, the near-term support is $95. Any break below targets $90/$85. Any breach below $85 targets $70.

The pair's near-term resistance is around $115. Any breach above confirms minor bullishness. A jump to $130/$150 is possible. A surge past $155 will take it to $200.

It is good to buy on dips around $85 with SL around $70 for TP of $125/$150.

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