Is Aave (AAVE) worth buying in June?
- AAVE remains under pressure, and the risk of another decline is still not over
- If the price falls below $250 support, the next price target could be around $200 or even below
- Aave has experienced tremendous growth in its user activity this year
Aave AAVE/USD has weakened from $667.23 below $210 since 18th May 2021, and the current price stands around $295. Daily trading volume has weakened, and traders should keep in mind that the risk of another decline is still not over.
Fundamental analysis: Aave has experienced tremendous growth in its user activity this year
Aave is a decentralized non-custodial liquidity market protocol where users can participate as depositors or borrowers. Depositors earn a passive income by providing liquidity, while borrowers can borrow on this popular DeFi lending protocol.
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Aave is running on the Ethereum blockchain, and it has an even more limited supply than Bitcoin. Aave offers access to users all over the world and continues to expand its functionality by enabling the development of a variety of third-party applications.
Aave has experienced tremendous growth in its user activity this year, and it is important to say that coin owners actively contribute as part of the community to this protocol and its governance. Aave has partnered with many developers, while the well-known names include Axie Infinity, Balancer, and Pixelcraft Studios.
Aave is entirely risk-free and has its cryptocurrency under the symbol AAVE that allows you to vote and decide on the outcome of Aave Improvement Proposals (AIPs). You can also use AAVE to provide security to the protocol, and you will earn staking rewards and fees from the protocol.
You can learn how to buy Aave (AAVE) here, and if you decide to trade this cryptocurrency in June, you should use a “stop-loss” order because the risk remains high. This is a very promising project that is part of the Decentralized Finance (DeFi) movement, but there is still a level of uncertainty.
Aave can not determine whether the borrower will be able to pay the loan back with interest, so its users must lock up cryptocurrencies worth much more than the loan they request. In this way, users should deposit large amounts of capital to obtain loans, making all loans overcollateralized.
Aave’s (AAVE) price has skyrocketed since January 2021 and reached a record high above $660 on 18th May. Since then, the price has collapsed, daily trading volume has weakened, and the risk of further declines is probably not over.
Technical analysis: AAVE can easily back below the $250 support
The cryptocurrency market remains under pressure, the price of AAVE can easily back below the $250 support, and probably it is not the best moment to buy this cryptocurrency. It is also important to mention that the price of AAVE is correlated with the price of Bitcoin, and investors in this cryptocurrency should also have Bitcoin on their “watch list.”
Aave (AAVE) is currently trading around the $295 level, but it would be a strong sell signal if the price falls below $250 support. The next price target could be around $200 or even below; still, if the price falls jumps above $400, we have the open way to $450.
Aave (AAVE) has weakened from $667.23 below $210 since 18th May 2021, and the current price stands around $295. If the price falls below $250 support, the next price target could be around $200 or even below.
Where to buy right now
To invest simply and easily, users need a low-fee broker with a track record of reliability. The following brokers are highly rated, recognised worldwide, and safe to use: