- AAVE could rally to the next resistance at $165 as buying pressure grows.
- Declining exchange reserves and rising DeFi activity could be the catalysts behind the next rally.
As a seasoned crypto investor with a knack for spotting trends and interpreting technical indicators, I find the current state of AAVE quite intriguing. The altcoin has been battered by bearish sentiments, but recent developments hint at a potential rally. The Awesome Oscillator flipping green and the Chaikin Money Flow trending upwards, while still negative, suggest that a reversal could be imminent.
In the past week, Aave [AAVE] has been experiencing a downward trend, with its price dropping by about 6%. But recently, there are indications that it might be regaining momentum as it has increased by approximately 2.3% over the last day, currently trading at $147.
As a crypto investor, I noticed on the daily chart that the bearish trends seemed to lose strength. This shift occurred following the flip of the Awesome Oscillator (AO) from red to green. While the AO remains negative at this point, suggesting that bears continue to dominate, a potential trend reversal might be imminent.
The Chaikin Money Flow (CMF), moving upward and changing to a positive value, lends credence to the optimistic viewpoint. This financial tool indicates that the demand for buying shares is currently stronger than the supply of sellers, potentially setting the stage for an upturn in prices.
If the upward trend of AAVE continues as suggested by these bullish indicators, the upcoming resistance point will likely be at the 0.236 Fibonacci level ($157). Overcoming this barrier could trigger further growth leading to a potential price target of $165.
Besides the technical indicators, on-chain metrics also show that an uptrend is possible.
Exchange reserves plummet
AAVE exchange reserves have dropped to record lows suggesting that the selling pressure is easing.
According to data from CryptoQuant, reserve levels on cryptocurrency exchanges have consistently decreased since mid-October, even though there were minor price increases.
Less AAVE being held on exchanges for sale suggests an opportunity for price recovery. Furthermore, if demand suddenly spikes while exchange supply remains scarce, this altcoin might experience a strong rebound.
AAVE DeFi TVL increases
As a researcher, I’m excited to note that the resurgence of AAVE could be robust, primarily driven by the consistent expansion of its Decentralized Finance (DeFi) Total Value Locked (TVL). In simpler terms, the increasing amount of funds locked in AAVE’s DeFi ecosystem indicates a growing interest and potential for price recovery.
In simpler terms, AAVE is currently one of the biggest players in the decentralized finance (DeFi) world, with a total value locked (TVL) of approximately $13.05 billion according to DeFiLlama at this moment in time. This figure has grown by nearly $500 million since the beginning of the month.
An increase in DeFi (Decentralized Finance) activities often triggers price increases, since AAVE serves as the native token for executing transactions within this protocol.
Read Aave’s [AAVE] Price Prediction 2024–2025
Lastly, AAVE’s token holders could also influence the rally. At press time, 57% of holders were in profits per IntoTheBlock. Additionally, nearly 18,000 addresses bought the token above $155.
If AAVE’s upward trend persists, there’s a good chance it will encounter resistance at around $155, as some of its current holders might choose to cash out their gains.
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2024-10-28 13:11