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AAVE rose 20% Wednesday to $170, a level not seen since May 2022. An asset in accumulation for more than two years is attracting traders and analysts who feel it has additional upside potential.
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AAVE’s strong recovery since July 2024 impressed traders despite market consolidation and low volatility. Within months, the asset rose 125% from $72 to $170.
End Of Accumulation Phase For AAVE?
According to the founder of DefianceCapital, Arthur, it means that the crypto has reached its end of the almost 900-day accumulation phase. There is a clear technical sign: the price has been forming higher highs and higher lows on the daily chart.
Should the daily candle close above $153, some analysts believe that the asset can break toward the main level of resistance of $200.
$AAVE is trading at the highest level since May 2022 and seems to be breaking out from a 2 year consolidation pattern.
Expect ATH reclaim to further solidify DeFi Renaissance. pic.twitter.com/pn29UsBMes
— Arthur (@Arthur_0x) September 22, 2024
Crypto expert TraderKoz recently highlighted a strong bounce of AAVE from the accumulation zone, further amplifying the bullish mood. According to him, the asset is ready to “blow” in the next trading sessions. His conclusions are consistent with the general consensus of the market which said that the coin was due for an enormous upsurge in its price.
AAVE could rise 232% to $536 by October 2024. CoinCodex data reveals market momentum and technical alignment support this prognosis.
$AAVE breaking out of almost a 900 day accumulation range
Look for charts like this and load your bags pic.twitter.com/wbb4pe2gVK
— TraderKoz (@TraderKoz) September 22, 2024
Rising Total Value Locked (TVL)
The Total Value Locked (TVL) of AAVE rose nearly 100% from January 2024 with a present value at the time of writing of $12.181 billion. Any rise in TVL is indicative of growing interest by investors. This, most of the time, tends to have an upward price effect. DeFi is becoming alive again, AAVE’s rising TVL shows it’s reaping the benefits of this renewed enthusiasm.
Figures from Santiment shows the total supply of AAVE now dominated by large holders is 55%. Such concentration may hint at a particular level of centralization but also symbolizes massive confidence from major investors. The whales have been consistently gathering the asset as a sign of belief in how well AAVE will perform going forward.
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Bullish Momentum Continues
Further support for this bullish trend is the AAVE daily exponential moving averages (20, 50, 100, and 200), which implies a high momentum on price action. If this trend continues and breaches above the resistance level of $200, several analysts believe that it will leave a clear path toward $260 in the near term.
AAave’s transaction volume is still trending upwards. Santiment data shows that the profit loss ratio stands at 4.472, where most of these trades are closing with a profit. So with these kinds of profitable trades on the rise, holders’ confidence only grew with big investors ramping up exposure to AAVE.
Forecast Is Bright For AAVE Price
CoinCodex projects AAVE to rise in October of 2024. The market is still generally positive, although the Fear & Greed Index has run out and resides at a neutral 52. AAVE, however, has closed up for 13 out of the past 30 days, so that’s a decent streak of strength.
Featured image from Fortune, chart from TradingView
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