When they woke up this morning, AAVE price must have felt a surge of strength and energy. Breaking the 3-month consolidation upwards and the beginning of a new growth wave formation is a very good reason for joy. We expected this event and wrote about it in our previous article.
The record increase in demand for AAVE in recent days is confirmed by trading volumes. Another indicator of the AAVE market strength we saw last night. At a time when the BTC price confidently fell to $46,000, the AAVE price updated a historical high.
Yes, of course, the level of BTC dominance has significantly fallen over the past 2 months. Though, if we look at our yesterday’s FIL analysis and check its price today – it becomes clear that not every DeFi token behaved the same in a critical situation.
Mark of $500 Remains Crucial to Continue AAVE Growth Trend
Before the new growth wave in the market continues, we will expect a retest of $500. It is during this retest that investors who did not have time to enter the AAVE market will have a good opportunity to do so with low risks and a good price. The first target of the new wave of AAVEUSDT growth is the mark of $800.
The first problem to this target is noticeable on the AAVEBTC chart:
If in a pair to USDT buyers managed to update the all-time high, then on the AAVEBTC chart this has not happened yet. The AAVEBTC price rebound from the all-time high range should provoke a slight correction in the AAVE market.
Alternative Scenario of AAVE Price Movement
The weak reaction to the BTC fall of other tokens and coins was due to the hedging of BTC investors in altcoins. However, the continuation of the BTC correction is a very likely scenario:
As long as the BTC price is above the range of $42,000-43,000, AAVE will have a good time for development and growth. But below this range, despite the low level of BTC’s influence, the entire DeFi cryptocurrency and ecosystem market will start a panic sale. In this case, the AAVE price will return to the consolidation range and again test the mark of $300.