AAVE price has crashed over the past few weeks, joining other cryptocurrencies that remain in a steep bear market.

AAVE, the second-biggest player in the decentralized finance industry after Lido DAO, has numerous catalysts.

AAVE, the second-biggest player in the decentralized finance industry after Lido DAO, has numerous catalysts. The network has just expanded to the Sonic Chain, formerly known as Fantom, and attracted over $33 million in assets. This addition has brought its total value locked (TVL) to over $18 billion, a trend that may continue in the near term.

Secondly, AAVE is one of the most profitable players in the crypto industry. It has made over $148 million in fees this year, making it the fourth most profitable player in DeFi like Jito, Uniswap, and Lido Finance.

Thirdly, AAVE has just made a big proposal that will reward holders. Some of these proposals include the ending of slashing for AAVE stakes, terminating LEND, and transferring of 320K AAVE tokens to the protocol.

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The other major proposals in the network include the purchase of $1 million worth of AAVE tokens approximately every 6 months. Those repurchases will help to reduce the number of tokens in circulation and make the remaining tokens more valuable by scarcity.

This will happen as the number of AAVE tokens in circulation dwindles. CoinGlass data shows that the AAVE tokens in exchanges have dropped to 2.21 million, down from December’s high of 2.68 million. Falling balances is a bullish thing since it is a sign that many AAVE investors are not selling their coins.

Further, AAVE has proposed allocating 50% of the revenue generated to GHO to anti-GHO, with 80% of the funds moving to AAVE stakers.

The AAVE price technical analysis

The weekly chart shows that the AAVE coin price peaked at $396 and then retreated. This was an important level since it was the highest swing in September 2021. It has formed a cup and handle pattern, with the current retreat being the handle section.

AAVE price has remained above the 100-week Exponential Moving Average, a sign that the bullish view is still intact. It remains between the 61.8% and 78.6% Fibonacci Retracement levels.

AAVE token has dropped to the bottom of the trading range of the Murrey Math Lines. Therefore, there is a likelihood that the coin will rebound and retest the strong pivot point at $396, representing a 92% increase from the current level.