AAVE surged 20% on Wednesday to $170, a level not seen since May 2022. An asset that has been held for more than two years is attracting traders and analysts who feel it has potential for further upside.
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AAVE’s strong rally since July 2024 has impressed traders despite market consolidation and low volatility. In just a few months, the asset has surged 125% from $72 to $170.
End of accumulation phase for AAVE?
According to DefianceCapital founder Arthur, this means that the crypto has reached the end of its nearly 900-day accumulation phase. There is a clear technical signal: the price has been forming higher highs and higher lows on the daily chart.
Should the daily candle close above $153, some analysts believe the asset could break towards the key resistance level of $200.
$AAVE is trading at its highest level since May 2022 and appears to be breaking out of a 2-year consolidation pattern.
Expect the ATH recovery to further solidify the DeFi Renaissance. pic.twitter.com/pn29UsBMes
-Arthur (@Arthur_0x) September 22, 2024
Crypto expert TraderKoz recently highlighted a strong recovery of AAVE into the accumulation zone, further amplifying the bullish sentiment. According to him, the asset is ready to “break out” in the coming trading sessions. His conclusions are consistent with the general market consensus that the coin would see a massive price increase.
AAVE could rise 232% to $536 by October 2024. CoinCodex Data reveals market dynamics and technical alignment support this prognosis.
$AAVE breaking out of an accumulation range of nearly 900 days
Look for charts like this and pack your bags pic.twitter.com/wbb4pe2gVK
-TraderKoz (@TraderKoz) September 22, 2024
Increase in Total Value Locked (TVL)
AAVE’s total value locked (TVL) has increased by almost 100% since January 2024, with a present value at the time of writing of $12.181 billion. Any increase in TVL is indicative of growing investor interest. This, more often than not, tends to have a bullish effect on the price. DeFi is coming alive again, and AAVE’s rising TVL shows that it is reaping the benefits of this renewed enthusiasm.
Santiment’s figures show that the total supply of AAVE now dominated by large holders is 55%. This concentration may suggest a certain level of centralization, but it also symbolizes enormous confidence on the part of large investors. Whales have been consistently gathering the asset as a sign of belief in AAVE’s future performance.
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Bullish momentum continues
Further support for this uptrend is AAVE’s daily exponential moving averages (20, 50, 100, and 200), which imply high momentum in price action. If this trend continues and breaks above the $200 resistance level, several analysts believe it will leave a clear path towards $260 in the near term.
AAave’s trading volume is still trending upwards. Santiment data shows that the profit-loss ratio is 4.472, with most of these trades closing in profit. Thus, with the increase in such profitable trades, holder confidence has only grown as large investors increase their exposure to AAVE.
The forecast is bright for AAVE price
CoinCodex projects AAVE to surge in October 2024. The market is still generally positive, although the Fear and Greed Index has exhausted itself and resides at a neutral 52. AAVE, however, has closed higher in 13 of the last 30 days, so this is a decent streak of strength.
Featured image from Fortune, chart from TradingView
