Aave (AAVE) is attracting market attention due to its recent movement along long-standing diagonal and horizontal trendlines, according to a market revelation disclosed today by crypto analyst Sjuul.
Aave (AAVE) is a DeFi token powering Aave, a decentralized lending protocol that allows people to deposit their crypto assets to earn interest and borrow various assets against their collateral.
Today, AAVE experienced a mild decline of 1.2% over the past 24 hours, making its value currently trade at $119.36. Its price has also been down 7.6% over the past seven days, showing its ongoing consolidation phase. As per Sjuul’s market observation, the DeFi asset is holding its ground; technically, it is sitting right on a diagonal and horizontal support line, which could break or bounce its movement.
AAVE Sitting on Diagonal Support
According to the analyst, Aave approaches a potential breakout as it is currently testing a long-established diagonal and horizontal support line on its daily timeframe. This trendline has served as a strong barrier during recent price pullbacks, displaying signs of an imminent breakout from its continuing downside movement.
The daily close on this diagonal and horizontal support line is a confirmation that the cryptocurrency could be preparing to shift its market structure. Technical analysis suggests that Aave is building a foundation for a significant bullish trek in the crypto market.
A clear double bottom formation is building on the lower timeframes, an indicator that buyers are progressively entering the market, influencing recent price action. This pattern often suggests that robust demand is developing after a decline.
The most crucial support level currently is $111.23, where the asset has been maintaining its price, with the double bottom setup signaling a looming bullish move.
The current price of Aave is $118.27.
AAVE Defends $111.23 Demand Zone As Tokenized Asset Deposits Surge
AAVE has continued to defend its $111.23 demand zone as real-world asset (RWA) deposits on its Horizon Market crossed the $1 billion mark, according to data shared by DeFi protocol on Friday, February 20.
RWAs include treasury and bond-like products, and their increase indicates that more institutional customers are entering the Aave platform to engage with larger tokenized assets. The protocol is witnessing elevated demand for its tokenized assets, catalyzed by the US SEC regulatory approval that promotes widespread institutional adoption.
