Technical evaluation methods to analyze Aave (Aave) and market trends
The cryptocurrency world has experienced rapid growth in recent years, with many new projects that arise to capitalize on exaggeration. Among them is Aave (previously known as Aventus), a decentralized loan protocol which has won significant field since its launch in 2018. In this article, we will explore the technical evaluation methods to analyze the trends of Ave and market.
Understand Aave
Aave is a decentralized loan platform that allows users to provide cryptocurrencies without the need for intermediaries such as banks or traditional exchanges. The protocol uses a unique algorithm called “DEFI” model (decentralized finances), which allows loans, loans and trade of several cryptocurrencies such as ETH, USDC and DAI.
Technical evaluation methods
To analyze AAV and market trends, we must understand certain methods of technical evaluation. Here are some keys:
- Price ratio to be reserved (P / B) : This method compares the current price of security to its accounting value (also called net asset value). It gives investors an idea of knowing whether the assets of the company are overvalued or undervalued in relation to their responsibilities.
- Price ratio (P / E) : This relationship compares the current price of shares with your benefits by action. It helps investors determine whether an action is too expensive or not very economical compared to their possible benefits.
- Mobile average : These are technical indicators that measure the average price of an asset for a period of time. They can help identify trends and predict future price movements.
- Relative resistance index (RSI) : This indicator measures the magnitude of recent price changes to determine sales or overall conditions.
AAVE technical analysis
Now, let’s apply these evaluation methods to analyze Aave:
- Price ratio (P / E) : Aave has a relatively high P / E ratio compared to other market-monnaies on the market. According to CoinmarketCap, Aave’s P / E relationship is around 15 years, indicating that investors are ready to pay a bonus for this project.
- Mobile mines : The short -term mobile average (SMA) is currently $ 19.50, while long -term SMA is $ 24.20. This indicates that the price has been increasing from trends in recent months, which suggests a high demand for assets.
- Relative force index (RSI) : Aave RSI is currently in 44, indicating that it is overloaded. However, this does not necessarily mean that the asset will decrease in the short term.
Market trends
In addition to technical analysis, market trends are also crucial during the analysis of the Aave:
- Analysis of feelings : Analysis of the feeling of investors and traders can provide valuable information on market trends. If a large number of investors buy or sell aave, this may indicate high demand.
- feeling of the community : The attitude of the community towards Aave is also essential to understand market trends. The positive feeling of communities such as R / Aave de Reddit and other online forums can be an interest in the market.
- Commercial captain : Aave Total Bourse Capitalization (MAKT) has constantly increased in recent months, indicating a strong interest in investors.
Conclusion
Technical evaluation methods are essential to analyze Aave and understand market trends. When applying these methods, investors can obtain valuable information on price movements, feelings and potential growth prospects of the asset. Although there is always an error or a risk of bias when using technical analysis, this article provided a solid base to explore Aave by technical evaluation.
Recommendations
Based on our analysis:
* Buy:
If you believe in the long -term potential of Aave, plan to invest in the asset.