Aave drops 8% in October: Assessing the altcoin’s road ahead

• As at press time, Aave was down 8% in October.
• Aave looks set to break out of a cup-and-handle pattern.

Aave [AAVE] has emerged as one of the standout protocols in the crypto space, particularly for its focus on decentralized lending.

After three consecutive months of bullish momentum, Aave has caught the attention of traders and investors.

In July, it posted a gain of more than 10%, signaling a shift in market sentiment. The following two months saw even more impressive gains, with closes of over 20%.

Despite current October’s 8% drop, historical trends suggest that it could reverse losses and achieve gains of over 20% by the end of the month.

Source: IntoTheCryptoverse

With the broader crypto market expected to perform well in Q4, Aave presents an opportunity for those looking to capitalize on its recent dip.

Examining Aave’s price action reveals a promising cup-and-handle pattern forming on the weekly chart. This often signals the potential for a breakout.

After a healthy pullback, price retested the $140 support zone. This set the stage for continuation toward the $151 level and possibly higher.

Source: TradingView

Traders should keep an eye on the breakout confirmation, as it could lead to significant gains.

When markets break out from long consolidation periods, they often rally for extended periods, and Aave may be no exception.

Aave’s value and 365D ROI

When comparing Aave’s performance to Bitcoin (BTC), Aave has shown strength even in its correction phase.

Its BTC valuation reached the bottom when the broader bull market for crypto ended, but Aave remained in a consolidation phase.

It wasn’t until August that Aave’s token finally broke out of this range. Now, with Aave outperforming Bitcoin, it’s well-positioned for further gains.

Source: IntoTheCryptoverse

This recent correction could be viewed as a temporary pullback before it continues its upward trajectory. This could potentially lead to a bullish close by the end of the month.

Adding to the optimism surrounding Aave is its 365-day return on investment (ROI), which currently stands at 2.2.

This indicates that most holders are in profit year-to-date, further bolstering confidence among investors.

Source: IntoTheCryptoverse

With the majority of holders seeing gains, sell pressure is expected to remain low, reducing the chances of a significant price decline.

Read Aave’s [AAVE] Price Prediction 2024–2025

Instead, traders are likely to hold their positions, anticipating even higher returns in the near future.

With historical data suggesting a bullish fourth quarter, a potential reversal and further gains for Aave are set despite a temporary dip in October.