AAVE, ranked at 16th in the market, has a market capitalization of $4,908,323,217 and a daily trading volume of $383,795,224. The performance of the cryptocurrency in the recent bull-run is one to be admired. AAVE stood at a price level of $85 at the end of the year but skyrocketed to as high as $570. The $1000 mark appears to be a possible target price for the cryptocurrency.
The market sentiment for AAVE is bullish as buyers dominate the market. The technical indicators are giving out a signal of buy. Of the indicators, oscillators are mainly bullish while the Moving Averages are standing at a neutral position.
According to the price analysis of a trader, AAVE had been operating in a descending channel formation of which it broke out to the upside in March. Per the trader, AAVE is heading upwards with various Exponential Moving Averages as supporting levels. The coin is also bound to face strong resistance levels in the near future with the closest at the Fibonacci level of 0.114 which lies parallel at the price level of $536. Various rebounds are expected at this resistance level and a successful break can result in the target price of $600. If AAVE is able to hit the target price as approximated by the trader, it has the potential to touch the $1000 mark by the end of the year.
CoinPriceForecast has very optimistic outlook for the future of the cryptocurrency. Per their forecasts, AAVE is set to have a price level of $3,766 by the end of the year while the 5-year forecast predicts AAVE to have a price of $44,000. Long Forecast, too, predicts that the cryptocurrency will have a price of $1,000 by the end of 2021.
Is the target price of $1000 possible by the end of 2021?
As cryptocurrencies move toward mainstream adoption, investors – both small scale and giant firms – began to explore alternatives to the king and queen of the cryptocurrencies. Bitcoin and the likes have moved out of the reach of the small investor and, hence, interest in altcoins like AAVE is increasing. Grayscale – the asset management firm – has also expressed interest in the cryptocurrency. The firm is exploring the creation of new products on the block chain of AAVE.
The cryptocurrency has potential and with bulls dominant in the market it appears as though a not-too-ambitious goal as a majority of the forecasts – as optimistic as they might be – places AAVE at $1,000. This certainly does not mean that AAVE cannot disappoint. The notorious uncertainty and volatility of the cryptocurrency market can also cause the cryptocurrency to crash and market corrections after a growth spurt are norm in the market.