As a seasoned analyst with over two decades of experience in the cryptocurrency market, I have seen my fair share of bull and bear markets. The recent 8% jump in AAVE price during Tuesday’s trading session is a testament to the resilience and potential of this project.
During the Tuesday trading session, the value of AAVE coins rose by 8%, reaching $125, outpacing the uncertainties in the broader crypto market. This surge is believed to be fueled by large investors (whales) amassing the coin and an expansion in on-chain activity. These factors suggest a possibility for even greater recovery in the future.
AAVE Price Rally Backed By Whale Buying and Onchain Expansion
1. The cryptocurrency market is currently regaining strength following the significant drop it experienced in July and the beginning of August. During this downturn, the top crypto platform AAVE experienced a substantial liquidation worth approximately $260 Million, as per Kaiko analytics. Despite the fact that such liquidations usually prolong corrections, the price of AAVE quickly bounced back, suggesting that investors found its reduced value appealing.
The idea that this accumulation theory is becoming more popular can be attributed to the fact that, as per the Onchain data tracker, two large investors have recently amassed approximately 31,407 AAVE tokens worth around $3.92 million. Even though there’s been a 28% increase in AAVE over the past week, these significant transactions suggest there might be potential for further price increases.
2 whales bought 31,407 $AAVE($3.92M) in the past 4 hours!
Whale”0x3737″ holds 3.56T $PEPE($28.4M) with a profit of over $28M on $PEPE.
He spent 813 $ETH($2.18M) to buy 17,690 $AAVE at $123 in the past 4 hours.
Whale”0x1D15″ withdrew 13,717 $AAVE($1.73M)…
— Lookonchain (@lookonchain) August 20, 2024
Additionally, it’s worth mentioning that the recovery corresponds with an impressive rise in the number of active addresses. According to data from intotheblock, this metric has peaked at a three-month high, pointing towards increased user interaction and network activity. This uptick in active addresses may imply that more individuals are joining the market, which could potentially drive further price growth for AAVE.
Key Resistance Breakout Hints Prolong Recovery Ahead
Over the past fortnight, the AAVE token’s price has surged significantly, jumping from $90 to $125. This represents an impressive 28% increase. The strong rebound, fueled by growing trading volume, underscores traders’ confidence in holding a long position on this cryptocurrency.
The AAVE price is up 8% today to give a decisive breakout from the $118 resistance. The Average Directional Index (ADX) uptick to 19% accentuates the recovery is in the early stage and could drive an extended recovery. If the daily candle closes, the buyers could gain suitable support to lead a 23% rally to target $153.
Instead, it’s worth noting that unlike before, altcoin has deviated from swiftly rising Exponential Moving Averages (EMAs) like the 20 and 50. This trend typically suggests an overextended rally, which may require a brief pullback to restore the bullish momentum.
Therefore, the AAVE price may revert from the $132 resistance and revisit the $110 floor.
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2024-08-20 20:06