Aave's price continues to rise, cementing its position as the largest crypto lending protocol with a market cap of $5.5 billion - more than all of the top 10 lending protocols combined.
The token is up an impressive 220% this year and 110% in the last 30 days alone, driven by strong bullish momentum and growing market interest. Technical indicators such as the RSI and CMF highlight continued positive trends, although some signs of slowing momentum suggest a potential consolidation ahead.
AAVE RSI is neutral after approaching the overbought zone.
The Relative Strength Index (RSI) is currently at 59.2, down from 69.19 on December 23, when the price peaked at $382. This decline in the RSI indicates that the price of Ave has moved away from the overbought zone, where high buying pressure usually precedes a price correction.
While the current RSI still reflects relatively strong momentum, the pullback suggests that the market may be stabilizing after a period of intense buying activity.
The Relative Strength Index is a momentum indicator that measures the speed and magnitude of price movements on a scale of 0 to 100. Values above 70 indicate overbought conditions, indicating a possible correction, while values below 30 indicate oversold conditions, often preceding a rebound.
With the AIV RSI at 59.2, the coin remains in a neutral to bullish range, suggesting that the uptrend could continue in the short term if buying momentum is rebuilt. However, the decline from overbought levels also suggests that AIV price could consolidate, allowing the market to absorb recent gains before determining its next direction.
The CMF indicator for AAVE is still very positive, but has declined from the recent peak.
The Chaikin Money Flow (CMF) indicator is currently at 0.17, maintaining a positive trend since December 23, when it peaked at 0.27. This indicates that AIF has seen continued capital inflows, reflecting strong buying pressure in the market.
While the CMF has declined from its recent peak, the positive value indicates that buyers are still in control, albeit with slightly less intensity.
The CMF is a volume-based indicator that measures the accumulation or distribution of an asset over a specified period, ranging from -1 to +1. Positive CMF values indicate accumulation and buying pressure, while negative values indicate distribution and selling pressure.
With AAVE’s CMF at 0.17, the continued positive flow suggests that the token could hold its current price levels or even see additional gains in the short-term if buying activity continues. However, the decline from the December 23 peak suggests that momentum may be cooling, which could lead to a period of consolidation before any decisive move.
AAVE Price Prediction: Can AAVE Rise to 3-Year Highs?
If the current positive momentum continues, AAVE price could test the $400 level, a significant level that would mark its highest price since 2021. The token only needs to rise by 7.5% to reach this milestone, supported by the formation of a golden cross on December 23 and EMA lines that indicate that the uptrend could continue.
This alignment of technical indicators suggests that bullish sentiment remains strong, with buyers likely to push prices higher if the trend continues steadily.
However, as CMF highlights, the strength of the uptrend has diminished compared to a few days ago, suggesting a possible trend reversal. If the AAVE price uptrend loses momentum, the price could drop to test the $355 support level.
If this support fails, AAVE could see further declines, with potential targets at $297 or even $271, reflecting a major correction.