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AAVE rose 20% Wednesday to $170, a level not seen since May 2022. An asset in accumulation for more than two years is attracting traders and analysts who feel it has additional upside potential.
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AAVE’s strong recovery since July 2024 impressed traders despite market consolidation and low volatility. Within months, the asset rose 125% from $72 to $170.
End Of Accumulation Phase For AAVE?
According to the founder of DefianceCapital, Arthur, it means that the crypto has reached its end of the almost 900-day accumulation phase. There is a clear technical sign: the price has been forming higher highs and higher lows on the daily chart. Should the daily candle close above $153, some analysts believe that the asset can break toward the main level of resistance of $200.
Rising Total Value Locked (TVL)
The Total Value Locked (TVL) of AAVE rose nearly 100% from January 2024 with a present value at the time of writing of $12.181 billion. Any rise in TVL is indicative of growing interest by investors. This, most of the time, tends to have an upward price effect. DeFi is becoming alive again, AAVE’s rising TVL shows it’s reaping the benefits of this renewed enthusiasm.
Figures from Santiment show the total supply of AAVE now dominated by large holders is 55%. Such concentration may hint at a particular level of centralization but also symbolizes massive confidence from major investors. The whales have been consistently gathering the asset as a sign of belief in how well AAVE will perform going forward.
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Bullish Momentum Continues
Further support for this bullish trend is the AAVE daily exponential moving averages (20, 50, 100, and 200), which implies a high momentum on price action. If this trend continues and breaches above the resistance level of $200, several analysts believe that it will leave a clear path toward $260 in the near term.
AAVE’s transaction volume is still trending upwards. Santiment data shows that the profit loss ratio stands at 4.472, where most of these trades are closing with a profit. So with these kinds of profitable trades on the rise, holders’ confidence only grew with big investors ramping up exposure to AAVE.
Forecast Is Bright For AAVE Price
CoinCodex projects AAVE to rise in October of 2024. The market is still generally positive, although the Fear & Greed Index has run out and resides at a neutral 52. AAVE, however, has closed up for 13 out of the past 30 days, so that’s a decent streak of strength.
As AAVE continues to break key resistance levels and attract more investors, the future looks promising. The ongoing accumulation phase, rising TVL, and bullish technical indicators all point to a strong uptrend. Traders and analysts are closely watching AAVE, anticipating more significant price movements in the near future.
