- AAVE may reach $200 if it surpasses crucial resistance.
- TVL is on the rise, indicating greater adoption.
Aave [AAVE] is flourishing in the current market landscape, outperforming numerous other crypto assets as the market bounces back from the downturn experienced on August 5th.
The price of Aave continues to increase consistently, with recent trading above $154, which is a significant resistance level.
For a breakout from the 800-day range to be confirmed, the price must remain above this pivotal point for a sustained duration. The weekly chart illustrates Aave nearing this resistance for the second time, underpinned by bullish momentum.
The Wave Trend Momentum Oscillator (WTMO) indicates strong upward momentum, bolstering the chances of breaking this resistance.
If Aave maintains a pattern of higher highs and higher lows, a break and retest could reinforce the $200 target as the next significant level in the mid-term.
Source: TradingView
However, maintaining the price above $154 is essential for this bullish momentum to persist, with the WTMO indicating robust strength to push prices higher.
Aave’s growing adoption propelling prices upward
Aave’s success is evident not only in its price movements but also in its Total Value Locked (TVL), which has been progressively increasing since the start of the year.
After a period of stagnation from April to July, Aave’s TVL is now on the upswing again, currently amounting to $19.6 billion, while the total borrowed through Aave’s protocol has reached $7.748 billion.
This solid growth underscores Aave’s role as a significant player in the DeFi sector. The increasing TVL and borrowed assets reflect a surge in adoption and confidence in Aave, further supporting the notion that its price could hit $200 by the end of the year.
Source: DefiLlama
In addition to favorable price performance and rising TVL, there is a notable increase in whale accumulation, adding considerable upward pressure on the price. Data from Hyblock Capital indicates that the current whale vs. retail delta metric stands at 74%, suggesting whales are accumulating Aave at a significant rate.
Moreover, the net long shorts delta reading sits at 84%, further affirming the likelihood that Aave might attain the $200 mark by year’s end.
The fusion of whale activity and strong net longs showcases a bullish outlook for Aave.
Address activity
Finally, Aave has experienced a steady uptick in the number of addresses holding the token, particularly from retail to whale investors, as well as from long-term to short-term holders.
The monthly changes in address holdings indicate consistent growth, despite minor drops observed among holders of $10K to $100K and those holding between $100K and $1M worth of Aave.
Read Aave’s [AAVE] Price Prediction 2024–2025
These segments saw declines of 9.09% and 6.67%, respectively.
Source: IntoTheBlock
Despite these fluctuations, the overarching trend remains positive, with Aave adoption continuing its upward trajectory. This increasing adoption, coupled with whale participation, rising TVL, and bullish price movements, indicates Aave is on track to achieve the $200 milestone.
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