As part of my attempt at aping into projects, I’ve stumbled upon a good candidate: Aave.

Let’s take a look at its fundamentals.

Mid term price action

First, Aave token was launched in 2017 actually in an ICO.

Its price stagnated for a long time before breaking through to $34 on 19th Oct 2020 (what happened there?).

Subsequently, like many other alts, it rose to prominence during Defi Summer and beyond. In May crash this year, it dropped from a height of $600 to $192, and has made steady recoveries since then.

Trading View

On trading view, we’re seeing that Aave is beginning to see positive momentum and money flow. (Bullish)

Volume

Near term volume is looking bullish.

Social Volume

Social volume has peaked quite a bit, which might be a sign of a local top. (Short term Bearish)

Network profit loss

Ambiguous. No warning signs in terms of excess profit taking. (Neutral)

Exchange Inflow

Spikes in Exchange Inflow, signifying local top.

MVRV

30-Day MVRV has risen to danger zones. Need to wait till its at bottom to buy.

Daily Active addresses

Generally plateuing.

Exchange outflow

The reason why I even looked at Aave in the first place is because when I looked at the exchange outflow chart, Aave has high exchange outflow, which might indicate that ’tokens are moving to hard or staking wallets for safe keeping, which is an indication of confidence.'

Whales

Whales holdings are rising rapidly without signs of abating: i.e. whales are buying.

Conclusion

Generally speaking, you can argue that Aave has just gone through a period where there’s ‘blood on the streets’, and that price has been capitulating for a long time. It might be an indication that it’s reached a dip where many are no longer interested.

Volume is relatively bullish, although exchange inflow and social volume signifies local top. Need to be careful there. MVRV also indicates short term bearish, whilst exchange outflow sees a long term bullish.

Aave seems to be in an upward momentum. In the short term, there might be a small bearish pull. Because of this, it’s probably a good idea to set a limit buy for a little lower. But however, whales and exchange outflow suggest that there might be a 3 month - 7 month swing to be made.

It’s long for me. Probably set a limit for $210 on Gemini.