AAVE surged 20% on Wednesday to reach $170, a milestone not observed since May 2022. This asset, which has been accumulating for over two years, is drawing the interest of traders and analysts who believe it holds further potential for growth.
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AAVE’s noteworthy rebound since July 2024 has caught the attention of traders, even amid market consolidation and low volatility. In just a few months, the asset ascended by 125%, climbing from $72 to $170.
Is AAVE Coming to the End of Its Accumulation Phase?
Arthur, the founder of Defiance Capital, suggests that this indicates the cryptocurrency has concluded its nearly 900-day accumulation phase. A significant technical signal is observed: the price has been consistently achieving higher highs and higher lows on its daily chart.
If the daily candle manages to close above $153, some analysts speculate the asset could break through to the major resistance level of $200.
$AAVE is trading at its highest since May 2022 and appears to be breaking free from a two-year consolidation pattern.
Anticipate a reclaim of the ATH to further reinforce the DeFi Renaissance. pic.twitter.com/pn29UsBMes
— Arthur (@Arthur_0x) September 22, 2024
Crypto analyst TraderKoz recently emphasized AAVE’s strong rebound from the accumulation zone, further boosting the positive sentiment. He predicts that the asset is poised to “explode” in the upcoming trading sessions. His analysis aligns with the broader market consensus that the coin is on the brink of a significant price increase.
AAVE has the potential to reach $536, representing a 232% increase by October 2024. Data from CoinCodex supports this forecast, highlighting market momentum and technical alignment.
$AAVE is breaking out of a range that has lasted almost 900 days.
Look for charts like this and load your bags pic.twitter.com/wbb4pe2gVK
— TraderKoz (@TraderKoz) September 22, 2024
Increasing Total Value Locked (TVL)
The Total Value Locked (TVL) of AAVE has nearly doubled since January 2024, now reported at $12.181 billion at the time of writing. A rise in TVL typically signifies heightened interest from investors, often resulting in a positive impact on pricing. The DeFi sector is revitalizing, and AAVE’s increasing TVL reflects its ability to capitalize on this renewed enthusiasm.
According to Santiment, large holders now dominate 55% of the total supply of AAVE. While this concentration may suggest some level of centralization, it also indicates significant confidence from major investors. Whales have steadily acquired the asset, signaling their belief in AAVE’s future performance.
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Bullish Momentum Persists
Additional support for this bullish sentiment is provided by the AAVE daily exponential moving averages (20, 50, 100, and 200), indicating strong momentum in price action. If this trend continues and surpasses the resistance level of $200, numerous analysts foresee a clear path toward $260 in the near future.
AAVE’s transaction volume is still on an upward trajectory. Santiment data reflects a profit-loss ratio of 4.472, with the majority of trades closing at a profit. With such a rising trend in profitable trades, confidence among holders is increasing, and large investors are boosting their stakes in AAVE.
Promising Outlook for AAVE Pricing
CoinCodex forecasts an upward trend for AAVE in October 2024. The overall market sentiment remains positive, although the Fear & Greed Index has neutralized at 52. AAVE has seen positive closes on 13 of the past 30 days, indicating a strong performance.
Featured image from Fortune, chart from TradingView
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