AAVE Price Targets ATH As Active Address Rise

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As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of price movements and trends. The recent surge in AAVE‘s price has been nothing short of spectacular, with its 420% rise since April. This is not just a bull run, but a rocket launch!

The price of AAVE hovers around the significant barrier at $400, taking a break from the powerful surge it started in April. This temporary halt in growth, combined with consolidation, seems to reflect accumulation by major investors and an increase in active wallets. All signs point towards another potential rise.

AAVE Price Soars By 420%

AAVE, a leading token in the Decentralized Finance (DeFi) sector, has been performing exceptionally well lately. It neared a significant barrier at $400, which saw it surge an impressive 420% from its April low. This remarkable rise has boosted its market value to more than $5.6 billion, placing it as the 27th largest digital coin in circulation.

As a researcher, I’ve observed an invigorating surge in the growth of AAVE following World Liberty Financial Institute (WLFI) announcing its selection as a service provider. Interestingly, WLFI has also expanded its portfolio by investing significantly in AAVE tokens, to the tune of 6,137 tokens worth approximately $2.28 million. This move is noteworthy due to WLFI’s connection with Donald Trump and his family members, adding a layer of influence to this strategic investment.

The price of Aave has risen alongside a new record high for its total value within the ecosystem, measured both in U.S. dollars and Ethereum. Data from DeFi Llama indicates that Aave now boasts over $23.2 billion worth of assets, significantly more than the lowest point this year at $7.53 billion. Moreover, the value of tokens locked in its Ethereum-based system has reached 5.8 million ETH, a trend that seems likely to persist.

AAVE’s Active Addresses Spike

It appears from recent data that the number of actively used addresses on AAVE is consistently growing. This trend is likely due to investors jumping on the bandwagon, driven by a fear of missing out (FOMO), as the token’s value surges.

Based on data from IntoTheBlock, the number of cryptocurrency addresses containing a balance has surpassed 166,000 – that’s more than it was in July when the lowest point was 160,000.

On December 16th, there was a significant increase in large transactions on the site, reaching a peak not seen since December 12th. This surge suggests that investors are becoming increasingly optimistic about the AAVE cryptocurrency token, indicating a bullish sentiment.

AAVE Technical Analysis: Is New ATH Next?

The AAVE token rallied for five straight weeks. It moved above several important resistance levels, including the psychological point at $300. Also, the coin rose above $152.68, its highest swing on March 11. 

AAVE’s price has encountered resistance at the significant reversal level on Murray Mathematics Lines, which is around $375. Additionally, it continues to stay above both its 50-week and 25-week moving averages.

As a crypto investor, I’m confidently predicting that the value of AAVE could surge towards its October 2021 peak at approximately $460, and then consolidate. It seems plausible that it will form a bullish flag or pennant pattern, a common continuation signal in chart analysis. If this pattern materializes, we might expect the coin to reach its all-time high of $667, which represents an increase of around 80% from its current value.

If the price of AAVE surpasses the resistance point at $460, it will strengthen the optimistic outlook. Conversely, a fall below the crucial support and resistance (S&R) level at $250 would weaken this optimistic perspective.

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2024-12-17 15:13