How AAVE Can Erase Losses for Long-term Investors

AAVE V3 has gained an impressive audience four months following its inception. Also, the project sees rapid growth in network operations. Nevertheless, the narrative differs for the native coin’s performance, with the AAVE coin desperately searching for recovery.

AAVE’s Downtrend

AAVE kick-started a downward journey after touching its ATH (all-time high) in May 2021. For now, the decentralized finance token hovered 87.09% beneath its ATH.

That comes after sliding from $412 to $81.7 during this publication. Its latest recovery attempts seemed arduous as the alt dropped over 14% within the past six days. That emerged after AAVE gained approximately 100.5%. Nevertheless, AAVE is far from home.

Micro timeframes show the altcoin on an uptrend. However, the macro outlook reveals downtrends for AAVE as it gradually surrenders the buying strength that had it climbing beyond $100 this week.

That remains a concern for all investors. However, market participants who purchased AAVE at price levels beyond $200 appear frustrated as they have encountered losses for longer.

Meanwhile, nearly 73% of AAVE addresses bought the altcoin beyond $200. And only 27% enjoyed profit as of July 2021. The percentage of holders in profits surged again in September before welcoming relentless declines.

82.5% of AAVE addresses were in massive losses by July 27, 2022. Remember, this number will drop to zero when AAVE surges approximately 674.5% to print a new ATH.

The alternative token required a bullish market plus increased volatility to achieve that. The former remains crucial as increased volatility amidst bearish markets might see price swings pushing AAVE beneath the $100 level.

AAVE investors should watch broad market tendencies for profitable moves. The crypto space appeared bullish while publishing this post, responding to the latest inflation numbers in the US.

While publishing this post, the overall crypto market capitalization stood at $1.06 trillion, increasing 9.38% within the previous 24 hours. That comes after the metric slid beneath $1 trillion, worrying investors.

Has the worst ended? Or it’s a dead cat bounce before we see dips again? It can be challenging to tell, but digital assets do not have much to suggest steady uptrends.