AAVE Price Rally and Recent Correction
The price of AAVE, a DeFi token, experienced a significant rally of 70% between June and July. However, it has since retraced and dropped below crucial support levels, indicating a continuation of the ongoing market correction. This decline has left investors uncertain about the future price movement of AAVE.
Development Update on Aave’s GHO Stability Module
A recent development update from the Aave team highlighted the progress of the GHO Stability Module (GSM). The module and its codebase were undergoing security audits by several third-party service providers. The Aave team also invited the community to inspect the codebase and report any security-related issues. This update contributed to a 13% rally in the price of AAVE.
Potential Further Losses for AAVE
Technical analysis suggests that AAVE may experience further losses and potentially drop back to the $47.2 swing-low, representing a 16% decline from current levels. Indicators such as the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) support this correction. Additionally, a death cross formation on the daily chart indicates a shift in market conditions favoring the downside.
Possible Upside for AAVE
If AAVE manages to bounce back, it could retest demand zones and trigger an uptrend, pushing the price higher. Overcoming resistance levels at $60 and the SMAs between $64 and $69 could lead to a potential ascent to the $80 psychological level or even the $87 swing high, representing a 56% increase from current levels.
Consider Sonik as an Alternative Investment
For those concerned about further losses in AAVE, Sonik is presented as an alternative investment option. Sonik is a new meme coin with a presale stage and offers staking benefits to holders. The project aims to achieve a market capitalization of $100 million and has already gained significant attention and funding.
Hot Take: AAVE’s Correction and Sonik’s Potential
The ongoing correction in the price of AAVE raises concerns for holders, as further losses may be expected. However, Sonik presents an enticing opportunity for investors seeking alternative options. With its unique functionalities and growing popularity as a meme-oriented digital asset, Sonik has the potential to make significant gains in the future.
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