- AAVE broke out from accumulation, while approaching the key resistance at $250 with a strong RSI
- On-chain metrics, rising Open Interest, and liquidations pointed to sustained bullish momentum
As a seasoned crypto investor with a keen eye for market trends, I find myself intrigued by AAVE’s recent performance. The token has broken out from its accumulation phase and is now poised to challenge the formidable resistance at $250.
Aave’s cryptocurrency [AAVE] has risen as one of the tokens with the most optimistic outlook in the market. It has recently burst free from its consolidation phase on the weekly chart. As we speak, it is trading at $202.53, marking a 2.06% increase over the past day. The token appears to be demonstrating robust price activity and momentum.
As AAVE keeps rising, the main concern is if it will sustain this bullish trend or encounter resistance at its current height.
Price action – Breakout and approaching resistance
AAVE’s performance has been noteworthy, breaking free from its accumulation period with a strong increase in worth. Currently, it’s valued at $202.53, suggesting it might be testing higher price points on the graph. Remarkably, the price is getting close to a significant barrier at $250 – a point that has traditionally proven difficult for AAVE.
The Relative Strength Indicator (RSI) showed a level of 65.86, signifying robust bullish energy and hinting that AAVE might be approaching an overbought state. Consequently, although the upsurge seems powerful, the token could encounter challenges in breaching this significant resistance level.
On-chain signals – Bullish metrics support the rally
The data from the altcoin’s blockchain provided further proof that its upward trend might persist. There was a 0.55% surge in network expansion, indicating growing engagement and curiosity within the community. Moreover, the “Into the Money” indicator showed an uptick of 1.49%, implying more traders are moving into profitable positions.
Furthermore, there was a 0.34% increase in the concentration level, accompanied by a 4.09% spike in significant transactions. This indicates robust interest from both retail and institutional investors.
As a result, these indicators imply that the increase in AAVE’s price is primarily due to genuine buyers, which strengthens the optimistic perspective.
Liquidations – Shorts and longs in play
The token has undergone significant liquidations as well, amounting to $82.5k for shorts and $115.27k for longs. This surge in liquidation events indicates increased market turbulence related to the token.
In simpler terms, due to the ongoing liquidation of both long and short positions, the price of AAVE may experience exaggerated fluctuations over the short term. These liquidations might lead to further increases in price if bullish sentiments prevail, or result in a decrease if bearish trends gain traction.
Open interest – Rising confidence in AAVE
The Open Interest experienced a significant jump of 10.35%, reaching an impressive total of $186.22 million. This spike suggests a growing optimism within the market, as it indicates that more traders are wagering on AAVE’s price climbing higher.
As the open interest increases, it becomes more probable that we’ll see substantial price fluctuations, particularly when the token approaches crucial resistance points.
Read Aave’s [AAVE] Price Prediction 2024-25
Can AAVE break through $250?
Based on its aggressive advance, bolstered by robust trading activity and optimistic blockchain indicators, it appears that the AAVE token could potentially reach greater heights. Yet, the formidable barrier at $250 remains a potential challenge to surmount.
Should it manage to surpass this current barrier, there’s a possibility of a significant surge as it approaches its peak levels once more. Keeping an eye on the token’s price movements would be advisable for traders, helping them decide if AAVE can maintain its progress and successfully breach this resistance.
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2024-12-01 10:15