As a seasoned crypto investor with battle-tested nerves and a knack for spotting trends, I can confidently say that the recent surge in Aave’s price has piqued my interest. With over a decade of experience navigating the digital asset landscape, I’ve learned to read between the lines of market chatter and technical indicators.
The price of Aave has been surging significantly, climbing 111% from its August 5 low. More recently, it surpassed a bullish reversal pattern, suggesting potential double returns within the near-to-medium term. Much discussion about Aave lately revolves around its connection with World Liberty Financial, a newly established financial entity owned by Donald Trump.
The buzz surrounding WLFI and Aave is intense, pushing the asset to new heights not reached in the past 2.5 years. Moreover, there’s been an increase in significant Aave investments, with a major player amassing over 60,000 AAVE within four days. Could a price jump be imminent?
Onchain Metrics Hint At Continuation Of Aave Price Rally
As a researcher, I’ve just noticed an interesting development in the AAVE market. A significant investor has just added 12,633 AAVE to their portfolio today, which amounts to approximately $2.02 million. This recent acquisition boosts their total AAVE holdings to 60,624 AAVE, equivalent to around $9.36 million. Over the past four days, this investor has been actively buying AAVE, a spree that might have influenced the coin’s price to increase by nearly 10%.
The whale bought another 16,818 $AAVE($2.59M) 3 hours ago and deposited it into #Aave.
Then he borrowed 2M $GHO to buy more $AAVE.
This whale bought a total of 47,991 $AAVE($7.45M) in just 2 days.
— Lookonchain (@lookonchain) October 14, 2024
According to IntoTheBlock analytics, there’s been a significant jump in large transaction activities related to Aave over the past week, rising from 63 to 129. This represents a whopping 104% rise, hinting at heightened interest among major investors towards the Aave token.
Moreover, data from Santiment indicates that the 30-day Realized Capitalization decreased during October, while its 365-day equivalent has been on an upward trend. This inconsistency hints at a change in investment patterns, as it appears short-term investors (those who bought within the last month) might be offloading their investments. On the other hand, long-term investors seem to be retaining their assets or even increasing their holdings.
Short-term traders’ selling may cause a brief dip in Aave’s price. Yet, persistent buying from long-term investors could set a minimum value for Aave, averting a substantial decrease and possibly triggering an upward trend instead.
Derivative Traders Are Bullish on AAVE
A look at traders’ behavior suggests that they are bullish on the price of AAVE. The Coinglass Liquidation Map data shows an overwhelmingly more cumulative Long Liquidation Leverage and the corresponding shorts. There are $5.29 million in Shorts versus $16.48 million in Longs. The imbalance shows bullish sentiment is dominating the market because traders anticipate further upside potential for the Aave price.
The price of AAVE has increased by 3.9% in the last 24 hours and is trading at $165.20. Technical analysis shows a breakout from a bullish cup and handle pattern, hinting at a staggering 2.4X in the coming weeks.
AAVE Technical Analysis: Can Aave Reach $400?
Attention has been drawn towards the surge in Aave’s price lately due to increased whale activity, strong bullish signals based on technical analysis, and a positive overall crypto market atmosphere.
The chart shows a classic cup-and-handle formation, which is typically a bullish continuation pattern that signals the resumption of an upward trend after a period of consolidation.
The estimated cost of AAVE may encounter resistance at approximately $230, a level that coincides with past peak values and serves as the initial goal reached in a common technical analysis method known as the measured move target, given the pattern’s height. Additionally, if the pattern fully plays out, we might see the price reaching $400, which represents a potential increase of 140% from its current value, considering the maximum potential breakout.
In simpler terms, because of the recent surge, the Relative Strength Index (RSI) is indicating that the market might be overextended. This could potentially mean a brief dip or stabilization period before another upward trend continues.
On the flip side, there’s reinforcement in the $120-$130 region, a place that was once a resistance area now serving as a foundation for potential price increases. But if the price drops more, the robust support around $80, aligning with the lower edge of the handle structure, might help keep Aave’s price from falling further.
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2024-10-15 09:36