As a seasoned researcher with over two decades of experience in the financial markets, I have seen my fair share of market cycles and trends. The current surge in AAVE‘s price is nothing short of intriguing, and it’s reminiscent of some of the bull runs we witnessed in the dot-com bubble era.
On Wednesday, the price of AAVE surged by 20%, reaching $170 – a figure last observed in May 2022. This long-accumulated asset has piqued the interest of both traders and analysts, who believe that it may still have significant potential for further growth.
Despite market stabilization and reduced volatility in July 2024, AAVE managed an impressive rebound that left traders astonished. In just a few short months, the value of AAVE skyrocketed from $72 to a remarkable $170, representing a significant increase of 125%.
End Of Accumulation Phase For AAVE?
As per DefianceCapital’s founder, Arthur, this indicates that the cryptocurrency is nearing the conclusion of an approximately 900-day period of accumulation. A notable technical signal has emerged: the price has been creating progressively higher peaks and troughs on the daily chart.
If the day’s candle finishes above $153, certain analysts predict that the asset could potentially push through the key resistance level of around $200.
Currently, AAVE‘s value has reached its peak since last May (2022) and appears to be bursting through a two-year period of price stabilization.
Expect ATH reclaim to further solidify DeFi Renaissance.
— Arthur (@Arthur_0x) September 22, 2024
Crypto analyst TraderKoz recently pointed out a robust rebound in AAVE from its accumulation area, adding more optimism to the overall sentiment. In his opinion, the asset is primed for a significant surge in the upcoming trading periods, using the term “explode” to describe this potential increase. This view aligns with the general market prediction that the coin was overdue for a substantial price jump.
According to CoinCodex, there’s a strong possibility that the value of AAVE could surge by an impressive 232%, reaching approximately $536, as we approach October 2024. This optimistic outlook is backed up by the market’s current momentum and the technical alignment suggested by their data.
$AAVE breaking out of almost a 900 day accumulation range
Look for charts like this and load your bags
— TraderKoz (@TraderKoz) September 22, 2024
Rising Total Value Locked (TVL)
The locked-in value of Aave increased almost doubled from January 2024, reaching $12.181 billion at the time of writing. Such growth in Total Value Locked (TVL) often reflects increasing investor attention. Typically, this surge tends to positively influence asset prices. The resurgence of DeFi is evident, and Aave’s growing TVL suggests it is capitalizing on this renewed excitement.
According to data from Santiment, approximately 55% of the total supply of AAVE is held by large investors, which could suggest a degree of centralization but also indicates strong faith among major investors in the future success of AAVE. This trend of large holders amassing the asset underscores their belief in its potential performance.
Bullish Momentum Continues
Additional evidence for this upward trajectory comes from the AAVE‘s daily exponential moving averages (EMAs) at 20, 50, 100, and 200, suggesting strong momentum in price movements. If this trend persists and surpasses the resistance point of $200, various analysts predict that it could pave a distinct path towards $260 in the immediate future.
AAave’s transaction volume continues to climb higher, as indicated by Santiment data. The profit-to-loss ratio currently stands at 4.472, suggesting that the majority of these trades are ending in a profit. Given this trend of profitable trades increasing, investor confidence has grown significantly, particularly among large investors who are increasingly investing in AAave.
Forecast Is Bright For AAVE Price
According to CoinCodex, it’s predicted that Aave will increase in October 2024. Although the overall market sentiment remains optimistic, the Fear & Greed Index has dropped and is currently at a neutral 52. Despite this, Aave has closed with gains for 13 out of the last 30 days, indicating a strong trend.
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2024-09-23 12:58