AVEE seems to repel its investors due to its volatility. April downtrends saw the alt erasing gains seen during the March short rally. Meanwhile, enthusiasts worry about further declines as the initial 72 hours of May witnessed bears leading the price action.
Is AAVE Ghosting Investors?
The decentralized finance token traded near $188 back in February, following recoveries from dips seen before. However, red candlesticks emerged on the charts after the uptrend, and AAVE lost nearly 38.52% within a month.
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That saw more than 80K investors leaving the market within four days. Nevertheless, a 111.64% upswing followed, attracting all market players. But, as AAVE drops another 41.32% declines, the question of investors quitting again emerges.
Surprisingly, the probability of such happenings remains low now, as market players are not displaying traits seen during the previous development. First and foremost, investors remain present within the network. AAVE had around 400 active users in mid-February, and the figure climbed within the past few weeks, hitting 1.57K.
Secondly, AAVE’s total volume generated from daily transactions hasn’t reduced within the previous two months. Transaction volumes hovered around $15 million the previous time investors escaped the platform. While writing this article, the metric averaged near $40 million.
However, understanding the nature of crypto investors and the markets means nothing is 100% in the space. Also, enthusiasts should beware that nearly 80% of investors remain in losses, although this figure had dropped from the March peaks at 90%.
Furthermore, most market players are somewhat pessimistic about Aave. Investors’ sentiment towards the altcoin stays negative, translating to a small window for their exit.
For now, AAVE shows pessimism as it might repeat the history of investors surrendering amid defeat. Though the possibilities of presenting such a narrative might be lower, current conditions have enthusiasts worried.
Meanwhile, AAVE investors should consider global market sentiments to ensure profitable moves. While writing this content, the overall crypto market displays bearish signals. The market value of all cryptocurrencies hovered around $1.74 trillion, reflecting a 0.35% decline within the past day. Extending the downbeat will mean struggles for AAVE and its investors.
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