- AAVE crypto experienced a bullish crossover, indicating that prices might rally higher in the near term.
Open Interest has risen by 43.31%, showing a strong retail buying presence.
As a seasoned analyst with over two decades of experience in the crypto market, I have seen my fair share of bull runs and bear markets. However, the current surge in AAVE is particularly noteworthy due to its strong fundamentals and technical indicators.
As an analyst, I’ve observed a significant upward momentum for Aave’s [AAVE] price over the past 24 hours, with a notable jump of 7.22%. This surge was accompanied by a substantial rise in trading volume, nearly doubling to approximately $220 million. This substantial increase represents a 93.26% rise, suggesting that both buyers and sellers have been actively engaged in the market.
The recent spike in market activity could be attributed to AAVE setting a new record for weekly DeFi borrowing volume, an announcement made by its founder Stani Kulechov, over the last few days.
In the past, the surge has pushed AAVE‘s trading price up to $104.73, and it’s expected that this token could keep climbing in the coming days according to AMBCrypto. Here’s their reasoning behind predicting an upward trend.
Is a $121 price target feasible for AAVE crypto?
Over the next few days, it’s expected that Aave (AAVE) will experience a significant price rise, driven by the Moving Average Convergence and Divergence (MACD) indicator.
In simpler terms, when a graph line called the MACD (Moving Average Convergence Divergence), which highlights trends based on the interaction of two other moving lines, moves above another line known as the signal line, it indicates a positive outlook or bullish trend.
In the present situation, we’re witnessing a progression involving AAVE, whereby its Moving Average Convergence Divergence (MACD) line has just moved over its signaling line. This indicates that the buyers might be preparing to drive the price even higher.
The rally could potentially boost AAVE to the $111.86 resistance region shortly.
Should the positive trend persist, Aave could potentially reach approximately $121.74. This significant figure is suggested by the Fibonacci retracement line and represents a price point last seen in April 2024.
If the current level weakens, there’s a possibility that AAVE could find support around $101.98, as there are substantial buy orders waiting in that area.
Retail traders place buy bets
It appears that more retail investors are becoming optimistic about the future price of AAVE, as they’re making buy predictions based on this optimism. This bullish sentiment is backed by a significant jump in Open Interest – up 43.31% to $94.24 million, according to Coinglass.
The rise in Open Interest indicates that these retail traders might have been adding fresh capital or further investments into the market.
More bullish signs
The Parabolic SAR and Directional Movement Index (DMI) furthered the bullish outlook for AAVE.
At the present moment, as I closely monitor the market trends, I noticed an intriguing pattern with AAVE – the Parabolic Stop and Reverse (SAR) has signaled a potential buying opportunity. This is because the dots generated by this technical indicator are currently situated below the price bars for AAVE, indicating a possible upward movement in its price.
Furthermore, the DMI for AAVE displayed a bullish pattern because the Positive Directional Indicator (represented by the blue line) exceeded the Negative Directional Indicator (shown in orange).
Realistic or not, here’s AAVE’s market cap in BTC’s terms
This setup indicated strong upward price momentum, signaling a compelling buying opportunity.
If the current positive trends don’t change, it seems reasonable that AAVE could scale new peaks, possibly hitting $111 and even reaching towards $121.
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2024-08-16 12:11