AAVE (which means “Ghost” in Finnish) is a decentralized financial protocol that allows people to give and receive crypto loans.
Lenders will benefit by transferring digital assets into a specially created liquidity pool. By using the liquidity, the borrower can also use crypto as collateral if they want to take back the loan.
When launched in November 2017, AAVE was known as ETHLend before rebranding in September 2018 which was founded by Stani Kulechov.
Kulechov’s main target is to offer a wider range of services beyond Ether loans and more targeted at people already involved in the ‘cryptocurrency’ community.
Looking at the AAVE/USDT chart, the price movement once made a jump of more than 2,000% starting from the market opening of November 2020 to the latest all -time high (ATH) at the $ 668 price level in May before declining again.
However, it seems that the AAVE price failed to break the SBR (support become resistance) zone around the $ 400 price and then resumed the decline. The fall is also in line with the fall in the value of Bitcoin which is still failing to break the $ 40,000 price level.
If we look at the price movement at the opening of the market today, the AAVE price is powerless in maintaining the uptrend to break the SBR $ 400 zone and further plunge to the price level around $ 375.
A lower decline will retest the support level around the $ 280 price before the zone will be a benchmark of whether the level is able to support the price movement back to make a jump or continue to grieve investors by making a lower decline.
If the price movement continues the downtrend and passes the support level of $ 280, a lower decline will occur and it is likely that it will reach the lowest price level ever recorded for 2021.
If the price movement strengthens again in making the rise, the next SBR zone around $ 525 will be the focus level for investors to test before it is possible for the AAVE price to return to the ATH level of $ 668 and may make the latest ATH level again.
As of 11.00 am Malaysian time, the AAVE price is down more than 6% to trade at around $ 370.
