In recent months, AAVE has often shown that the fundamentally strong project can also shine with price gains. And this is always the case when Ethereum is being outperformed. The first time this really happened was in mid-January 2021.
Anyone who switched from Ethereum to AAVE at that time and back again just under a month later would now have three times the amount of Ethereum. Not bad, for one month.
From the chart, we can clearly see the zone when a switch from Ethereum to AAVE made sense in the past. At around 0.11 ETH per AAVE, there was always at least a 50% reaction in the shortest time.
Currently, the price of Aave in Ethereum is again exactly at this zone and just below a downward trend line. A break of this trendline could catapult the price significantly upwards again. For now, however, a dip into the accumulation zone is also possible, as momentum is clearly on Ethereum based on the latest news.
In my view, the path of the money supports the thesis that an exchange of Ethereum into Aave offers a good risk-reward ratio, as investments are first made in Bitcoin, then in Ethereum (or “big alts”) and finally in the remaining alts (this then also includes AAVE).
Whether this will happen in the next few days or weeks? No one can predict that. However, the past shows that AAVE was always a buy at this price.
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Right now AAVE is in accumulation terrain. Everything under 0.10 compared to Ethereum is a steal. The valuation has shown in the past that AAVE can easily go to at least 0.15 making it a 50% gain over Ethereum.
