AAVE price eyes 10% gain as Aave reviews proposal to deploy its protocol on Solana via Neon EVM

Aave (AAVE) price has displayed massive volatility over the past several months, with an overall uptrend defined by higher highs and higher lows. Meanwhile, the network’s governance forum has been active, with the first step in bringing the Aave V3 MVP to Neon mainnet up for a vote.

Also Read: Aave price edges closer to 40% rally due to Ethereum

Aave reviews proposal for protocol launch

The Aave network is reviewing a proposal to launch its protocol on the Solana blockchain through the Neon Ethereum Virtual Machine (EVM). If the proposal is approved, it could see Aave’s presence expanded, while at the same time enabling more access to the Solana ecosystem.

With Aave poised to become the next Ethereum-based project looking to move their economy from Ethereum to Solana’s high speed contemporary programming language, the Solidity codebase can be moved without much change and launched on Solana.

Based on the proposal, deployment will enhance performance tenfold, while sparing Aave network users from the high gas fees. With this, market observers anticipate “a large migration of functionality from Ethereum to Solana in 2024.”

Aave price outlook with a pending bullish call in play

Based on the outlook of the Relative Strength Index (RSI), there is a pending call to buy AAVE, which could be executed once the RSI crosses above the signal line (yellow band). Traders heeding this call could see Aave price push north to confront the $106.98 resistance level.

Enhanced buying pressure above the said level could send Aave price to the supply zone, which stretches from $111.54 to $118.88. A break and close above its midline at $115.34 would confirm the continuation of the trend.

This could see AAVE tag the $120.00 psychological level, or in a highly bullish case, extend to reclaim the range high at $129.88. This would constitute a 26% climb above current levels.

AAVE/USDT 1-day chart

However, if the bulls ignore the bullish call, instigated by enhanced profit booking, Aave price could drop, slipping past the $90.00 psychological level, with potential for an extended fall to the demand zone between $83.38 and $90.24.

If Aave price slips past the midline of this order block at $86.81 and closes below it, this could initiate a continued fall, with the altcoin likely to find the next support at $80.00 psychological level.