AAVE Token Analysis
AAVE BULLISH October 2020
Analyst: Archer
Release date: November 5th 2020
Global Summary
👉 BULLISH
AAVE is the token of the project AAVE, a decentralized lending system and probably one of the most famous projects in the crypto space that allows users to lend, borrow and earn interest on cryptographic assets without intermediaries.
The interest in Defi grew immeasurably thanks to a few projects like AAVE and apparently has still not reached its peak.
The above graphic of Defi Pulse, a leaderboard that provides you with the important information around important Defi projects, clearly shows us that the demand for Defi services is still unrestrained and will likely continue to grow in the future.
Fundamental Analysis
👉 BULLISH
After Aave governance was moved to the Ethereum Mainnet (end September), the founding team handed over further key functions to the community, in order to ensure the community-centricity of the project. The AAVE token holders can thus participate in future votes on protocol changes.
It’s also important to mention that several Ventures such as Blockchain.com have invested $25 million in the Ethereum-based Aave protocol. Moreover, it’s Aave’s goal is to expand into the Asian market and to make the project more attractive to institutional investors.
Furthermore, it is worth mentioning that PayPal has now also entered the crypto business. It is surely only a matter of time until PayPal will start to look at projects like AAVE, which are well known to every crypto user in the space, and probably one that is worth to be offered to their userbase.
Technical Analysis
👉 NEUTRAL/BULLISH
Following a massive 45 per cent price crash between 15th October 2020 and 21st October, the negative trend on most DeFi projects continued while the total value locked (USD) in DeFi space roughly stayed the same.
AAVE tried to establish last week new support above 39$ but due to bitcoin’s stunning increases last week, it was sent down again.
After Bitcoin has settled down in 7. November 2020 to some extent, AAVE has quickly followed the positive trend of Bitcoin and AAVE’s 39$ trendline resistance was broken very quickly...
if AAVE can stabilize it’s value sufficiently in the next few weeks, it might knock again upon the next bullish trendline to break the upper trend line and therefore implements another bullish trend as seen months ago.
As one of Defi’s most reliable projects, AAVE has done a great performance this year and this was well deserved. Will it continue its success story? That remains to be seen
Until next month
To conclude, I think it’s the right time to accumulate and invest as the whole market is currently experiencing a boom. Promising DeFi projects such as AAVE will benefit as well as other well-known projects such as Swissborg or Binance
See you soon for a new analysis! #WeAreSwissborg — Take control of your crypto! — Archer
My name is Archer and I have been an enthusiastic crypto lover for years. Beside Bitcoin, my main focus are DeFi, PoS projects and of course promising projects like Swissborg :-)
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