Aave

Shiba

2024

Shiba Inu

<p class="is-style-lead">AAVE token price has remained in a narrow range since 2022, but some analysts believe that it could be ripe for a breakout as the accumulation continues.</p> 
<p>AAVE (<a href="https://crypto.news/price/aave/" target="_blank" rel="noreferrer noopener">AAVE</a>) was trading at $97.75 on Thursday, Aug. 8, up by 100% from its lowest point in 2022 but much lower from its all-time high of $708.</p> 
<h2 class="wp-block-heading" id="aave-token-is-in-an-accumulation-phase">AAVE token is in an accumulation phase</h2> 
<p>AAVE’s recent gains is likely due to the market better understanding the network’s popularity and profitability. Data by&nbsp;<a href="https://defillama.com/protocol/aave#information" target="_blank" rel="">DeFi Llama&nbsp;</a>shows that AAVE is the third-biggest player in the decentralized finance industry with over $10.7 billion in assets.</p> 
<p>It also generates substantial fees as the third most-profitable DeFi platform and has <a href="https://tokenterminal.com/terminal?v=N2FjZjE0" target="_blank" rel="">generated</a> over $222 million fees this year.&nbsp;AAVE makes most of its money from the interest rate spread between what it pays to lenders and what it charges its borrowers. It also makes money through flash loans and liquidation fees.&nbsp;</p> 
<p> You might also like: <a href="https://crypto.news/aave-nets-6m-in-revenue-amid-crypto-plunge/"> Aave nets $6m in revenue amid crypto plunge </a> </p> 
<p>Some analysts believe that AAVE has more upside potential, citing the ongoing accumulation. In an X post, Michael van de Poppe, a popular X analyst, identified AAVE’s weekly chart as one of the most promising charts in the crypto industry.</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr">One of the most promising charts in crypto is <a href="https://twitter.com/search?q=%24AAVE&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$AAVE</a>. DeFi is looking awesome for a big run. <a href="https://t.co/3oNylMixNv" target="_blank" rel="">pic.twitter.com/3oNylMixNv</a></p>— Michaël van de Poppe (@CryptoMichNL) <a href="https://twitter.com/CryptoMichNL/status/1821229825014587871?ref_src=twsrc%5Etfw" target="_blank" rel="">August 7, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>This view was shared by several other analysts, including Otsukimi, who pointed to the ongoing accumulation and the fact that the Relative Strength Index (RSI) has risen above the neutral point of 50.&nbsp;</p> 
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper"> 
  <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24AAVE&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="">$AAVE</a> <br>Not the best looking weekly chart, but not that bad either. <br><br>One that I'm keeping my eye on if it ever reclaims this level. Current candle looks great, RSI holding as well. High bullish cross at 75% is usually hopeful. <a href="https://t.co/QJxOX7tzQF" target="_blank" rel="">pic.twitter.com/QJxOX7tzQF</a></p>— Otsukimi (@OtsukimiCrypto) <a href="https://twitter.com/OtsukimiCrypto/status/1821323072131002581?ref_src=twsrc%5Etfw" target="_blank" rel="">August 7, 2024</a>
  </blockquote>
  <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script> 
 </div>
</figure> 
<p>Other analysts cited additional reasons for their bullish outlook on AAVE. Dalin Anderson hypothesized that the token was in the process of forming an <a href="https://x.com/HighAltitudeInv/status/1819197076745413032" target="_blank" rel="">impulse wave</a> of the Elliot Wave pattern. This pattern has five phases, with the third one being the most bullish.&nbsp;</p> 
<p>A possible catalyst for AAVE is that there are signs that whales have been accumulating the token in the past few months. Last week, a <a href="https://crypto.news/aave-rallies-10-amid-surging-whale-activity/" target="_blank" rel="noreferrer noopener">whale accumulated AAVE</a> tokens worth over $6.47 million in a two-day period.&nbsp;</p> 
<p>The accumulation concept has worked well among other cryptocurrencies in the past. Shiba Inu (<a href="https://crypto.news/price/shiba-inu/" target="_blank" rel="noreferrer noopener">SHIB</a>) stayed in two prolonged consolidation phases in 2021 and in 2022 and 2023. Each of them resulted in a strong bullish breakout.</p> 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14290272"> 
  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/08/Shiba-Inu-Price.png.webp"> 
  <img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/08/Shiba-Inu-Price.png" alt="Shiba inu price"> 
 </picture> 
 <figcaption class="wp-element-caption">
  Shiba Inu price | Source: <a href="https://www.tradingview.com/symbols/SHIBUSD/?exchange=CRYPTO" target="_blank" rel="">TradingView</a>
 </figcaption>
</figure> 
<h2 class="wp-block-heading" id="risks-to-aave-bullish-thesis">Risks to AAVE bullish thesis</h2> 
<figure class="wp-block-image size-full">
 <picture loading="lazy" decoding="async" class="wp-image-14290271"> 
  <source type="image/webp" srcset="https://crypto.news/app/uploads/2024/08/AAVE-Price.png.webp"> 
  <img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/08/AAVE-Price.png" alt="aave price"> 
 </picture> 
 <figcaption class="wp-element-caption">
  AAVE price chart | Source: <a href="https://www.tradingview.com/symbols/AAVEUSD/?exchange=BINANCE" target="_blank" rel="">TradingView</a>
 </figcaption>
</figure> 
<p>The main risk to the bullish thesis is that the two-year consolidation phase could go on for a few more months or years.</p> 
<p>Also, technically, there are signs that the token has formed a rising wedge and a bearish pennant chart pattern. In most cases, these patterns result in a bearish breakout, especially when the two trendlines near their convergence, as they are about to do.</p> 
<p> You might also like: <a href="https://crypto.news/chart-of-the-week-is-aave-on-the-brink-of-a-breakout-or-pullback/"> Chart of the week: Is Aave on the brink of a breakout or pullback? </a> </p>

AAVE price chart is ‘one of the most promising,’ crypto analyst says

Table of Contents

crypto.news

Other articles published on Aug 8, 2024

Solana Price Achieves New Highs: A Threat to Ethereum’s Reign?

Crypto Bull Run in September? U.S. $50B Buyback & Rate Cuts Could Ignite the Market!

XRP Outshines Bitcoin, Ethereum To Become Biggest Daily Gainer After Judge Imposes $125M Penalty,...

Next Cryptocurrency to Explode Thursday, August 8 — XRP, Toncoin, Stellar, Polkadot

Analyst Predicts Bitcoin’s Positive Outlook After Recent Low

Weekly Article Recap: 7/29-8/02

Join our free newsletter for daily crypto updates!