Aave (AAVE) has largely traded sideways over the last month without any significant breakouts. But it did manage to oscillate between $250 and $270. For most analysts, as long as the price remained above $250, then it was just a matter of time before Aave (AAVE) surged above $300. But a pull-back has seen the coin tank below $250. Should you still buy Aave (AAVE)? Well, here are some facts:
The recent pullback has largely been pushed by risk-off sentiment in the crypto market over the last 24 hours.
At the time of writing, Aave (AAVE) was trading at $221, down 13% in 24-hour intraday trading.
We expect sentiment in crypto to ease in the coming days, with Aave (AAVE) rebounding back to $250.
Data Source: Tradingview.com
Aave (AAVE) – Price analysis and prediction
Most New Year predictions were looking at Aave (AAVE) heading above $300 in the near term. There were of course some downside risks due to sluggish sentiment in broader crypto.
Despite bouncing between $250 and $270 the past few weeks, Aave (AAVE) tanked below $250 in a 13% 24-hour pull back. However, we expect the price to quickly rebound back to $250, especially with improving sentiment in the market.
After that, Aave (AAVE) will likely reclaim the $270 price and surge beyond $300 as earlier expected. But we are watching sentiment very closely to see how it plays out in the coming days.
Should you buy Aave (AAVE)?
Aave (AAVE) is one of the most promising DeFi projects. The protocol allows people to borrow and lend crypto assets through a decentralised ecosystem. Although this area is seeing a lot of competition, we expect Aave (AAVE) to be a major player in the long run. So, if you are looking for decent DeFi tokens to buy, this could be a good bet for any investor.
The post Here is why you should buy Aave (AAVE) despite pullback below $250 appeared first on Coin Journal.