Aave (AAVE) has been going through a period of recovery over the last few days. The leading DeFi protocol is reversing some of the losses reported during the crypto winter. But the launch of a new social media protocol dubbed Lens could push AAVE even further higher. Here are some highlights:
The new Lens protocol is an open social media platform built on Polygon with the hope of using off-chain storage.
The launch did not immediately lead to a bullish breakout for AAVE but analysts expect this to happen in the near term.
Besides, looking at the indicators, there is a clear bullish divergence in AAVE’s price action.
Data Source: Tradingview
AAVE – Price prediction and analysis
At the time of writing, Aave (AAVE) was trading at $177.55 down about 1% for the day. But despite this, the coin is still up around 7.5% in the last week or so. We have also seen the DeFi token smash past its 100-day Exponential moving average.
As the news of the social media launch starts to percolate the broader market, it is likely that AAVE will see some bullish uptrend. This will take the price action closer or above the 200-day EMA of around $205.
We also expect the DeFi token to consolidate around that price and surge towards $210 in the near term. This will represent an upswing of around 16% from its current price.
Why Aave (AAVE) is a decent investment?
AAVE is one of the most promising DeFi projects in the crypto market right now. It is designed to allow users to borrow and lend crypto in a fully decentralized manner.
Having launched in 2017, Aave has been delivering immense value to investors and is expected to continue the same trend in the future. So, if you ever wanted some exposure towards promising DeFi tokens, AAVE has to be top of the list.
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