{"id":474329,"date":"2022-07-15T16:53:15","date_gmt":"2022-07-15T13:53:15","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/defi-token-aave-faces-major-correction-after-soaring-100-in-a-month\/"},"modified":"2022-07-15T16:53:15","modified_gmt":"2022-07-15T13:53:15","slug":"defi-token-aave-faces-major-correction-after-soaring-100-in-a-month","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/defi-token-aave-faces-major-correction-after-soaring-100-in-a-month\/","title":{"rendered":"# DeFi token Aave faces major correction after soaring 100% in a month"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a23267a0af0e\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a23267a0af0e\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-token-aave-faces-major-correction-after-soaring-100-in-a-month\/#%E2%80%9D_DeFi_token_Aave_faces_major_correction_after_soaring_100_in_a_month_%E2%80%9C\" >&#8221; DeFi token Aave faces major correction after soaring 100% in a month &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-token-aave-faces-major-correction-after-soaring-100-in-a-month\/#AAVE_price_tests_key_inflection_level\" >AAVE price tests key inflection level<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-token-aave-faces-major-correction-after-soaring-100-in-a-month\/#Bear_flag_breakdown_scenario\" >Bear flag breakdown scenario<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-token-aave-faces-major-correction-after-soaring-100-in-a-month\/#GHO_stablecoin\" >GHO stablecoin<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_DeFi_token_Aave_faces_major_correction_after_soaring_100_in_a_month_%E2%80%9C\"><\/span>&#8221; DeFi token Aave faces major correction after soaring 100% in a month &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-28d77a7a>The price of Aave (AAVE) has more than doubled in a month, but its bullish momentum could be reaching a point of exhaustion.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"AAVE_price_tests_key_inflection_level\"><\/span>AAVE price tests key inflection level<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Notably, AAVE has surged by over 103% after bottoming out locally at $45.60 on June 18, hitting almost $95.50 this July 15. Nevertheless, the token&#8217;s sharp upside retracement move has brought its price closer to the level that triggered equally sharp pullbacks since early June.<\/p>\n<p>In other words, AAVE has been testing an ascending trendline resistance that constitutes a &#8220;bear flag,&#8221; a bearish continuation pattern.\u00a0For example, the trendline&#8217;s previous test on July 9 ended up in a 20% downside move. Similarly, a similar attempt on June 24 pushed AAVE price lower by nearly 30%.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/8a22b402-cb66-4023-889c-71fb0a135855.png\"><figcaption style=\"text-align: center;\"><em>AAVE\/USD daily price chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>As a result of this distribution behavior, AAVE&#8217;s ongoing attempt to break above the flag trendline could meet with extreme selling pressure. A pullback could then see AAVE\/USD retest the flag&#8217;s lower trendline near $67.75 as its downside target by September, down almost 30% from today&#8217;s price.\u00a0<\/p>\n<p>Meanwhile, the $76.30-level serves as interim support, primarily due to its history as a price floor in May that preceded a 60% rebound move.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Bear_flag_breakdown_scenario\"><\/span>Bear flag breakdown scenario<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>As a rule of technical analysis, the breakdown below\u00a0$67.75 could see AAVE plunging by as much as the height of the &#8220;flagpole&#8221; that formed before the bear flag. That would have the token eye $35.50 as its bear flag profit target, down over 60% from the current price.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/534981c6-5d60-432c-ae11-559dcaae846a.png\"><figcaption style=\"text-align: center;\"><em>AAVE\/USD daily price chart featuring &#8216;bear flag&#8217; breakdown setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Conversely, a continued rebound move above the bear flag&#8217;s upper trendline would invalidate the breakdown setup. In this case, the bullish target for AAVE will likely be the $115-$120 range that served as resistance in June.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"GHO_stablecoin\"><\/span>GHO stablecoin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>More than half of the gains during Aave&#8217;s price rally have come after its proposal to launch a U.S. dollar-pegged stablecoin called GHO.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/ Calling all GHOsts \u00a0<\/p>\n<p>We have created an ARC for a new decentralized, collateral-backed stablecoin, native to the Aave ecosystem, known as GHO.<\/p>\n<p>Read more below and discuss your thoughts for the snapshot (coming soon)!<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/P7tHl9LbBe\">https:\/\/t.co\/P7tHl9LbBe<\/a><\/p>\n<p>\u2014 Aave (@AaveAave) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/AaveAave\/status\/1545057714815901696?ref_src=twsrc%5Etfw\">July 7, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p><strong><em>Related:\u00a0UNI, MATIC and AAVE surge after Bitcoin price bounces back above $20K<\/em><\/strong><\/p>\n<p>On July 7, Aave Companies, a centralized entity that backs Aave&#8217;s lending protocol, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/governance.aave.com\/t\/introducing-gho\/8730\">requested its community<\/a> to vote on their &#8220;overcollateralized&#8221; stablecoin proposal. AAVE&#8217;s price surged by over 53% afterward, led by <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/intotheblock\/how-aaves-gho-fits-into-the-stablecoin-landscape-ad8a3965bae2\">speculations<\/a> that GHO would boost the DeFi token&#8217;s adoption.<\/p>\n<p>However, any further gains would risk pushing AAVE into &#8220;overbought&#8221; territory with its daily relative strength index (RSI) treading just five points below 70 as of July 15<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/df34a6cb-3400-4ec9-a9c1-06ef30ffcc06.png\"><figcaption style=\"text-align: center;\"><em>AAVE\/USD daily relative strength index. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Rising above the 70 threshold could push AAVE&#8217;s price into a correction phase, likely triggering the bear flag scenario as discussed above.\u00a0 \u00a0<\/p>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/defi-token-aave-faces-major-correction-after-soaring-100-in-a-month\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; DeFi token Aave faces major correction after soaring 100% in a month &#8220; The price of Aave (AAVE) has more than doubled in a month, but its bullish momentum could be reaching a point of exhaustion. AAVE price tests key inflection level Notably, AAVE has surged by over 103% after bottoming out locally at&#8230;<\/p>\n","protected":false},"author":1,"featured_media":474330,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvMmYwODZkYWYtOTA1Ny00NDNmLWJkZDctYjI1ZjRkMTc0NTY2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[92664,74867,88119,77595,74939,90109,78261,73785],"class_list":["post-474329","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-aave","tag-altcoin","tag-altcoin-watch","tag-lending","tag-market-analysis","tag-peer-to-peer-lending","tag-tech-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/474329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=474329"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/474329\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/474330"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=474329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=474329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=474329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}