- Aave is experiencing favorable momentum, fueled by a remarkable 675% increase in user addresses on the Optimism network.
- While the transaction volume has seen a decline, exchange reserves have surged, suggesting possible short-term selling pressure.
Aave [AAVE] has gained significant traction in the DeFi space, marking an extraordinary 675% spike in user addresses on Optimism in just one week.
This growth has surpassed other notable players such as Chainlink and Raydium, prompting speculation on whether Aave will break through resistance levels and trigger a bullish trend heading into 2024.
But is this growth sufficient to elevate the token to unprecedented highs?
What’s the current market status of AAVE?
As of the latest update, AAVE was valued at $157.37, reflecting a slight increase of 0.69% over the past 24 hours.
Although this price movement indicates modest positive momentum, Aave’s substantial rise in Optimism adoption may lay the groundwork for a more robust upward shift.
Additionally, active addresses have surged by 18.75% in the last 24 hours, with 1,233 wallets engaging actively.
This increase in active users points to rising interest in Aave, yet the market is still anticipating a clear breakout to confirm lasting upward momentum.
Source: CryptoQuant
AAVE price analysis: is it set to overcome key resistance?
Analyzing Aave’s daily chart reveals that the token is operating within a distinct ascending channel.
A notable resistance level is established at $165.22, which has been a hurdle for further upward movement, as the token has struggled to close above this threshold in recent trading activities.
The RSI registered at 52.26 at the latest update, indicating neutral momentum, suggesting that neither bulls nor bears currently hold a strong advantage.
Furthermore, AAVE is trading above its 50-day simple moving average (SMA) at $150.20, indicating a cautiously bullish trend. Therefore, surmounting the $165.22 resistance is crucial to maintaining the rally.
Source: TradingView
Are transaction metrics painting a different picture?
Interestingly, the transaction count has experienced a slight decline of 2.9% over the past 24 hours based on CryptoQuant data.
While this may indicate a brief downturn, it could signify a period of uncertainty among traders as they await clearer market signals.
Moreover, this reduction could suggest that the surge in user addresses on Optimism has not yet fully driven an increase in transactional activity.
Exchange net flow presents mixed indicators
Reviewing the exchange reserves shows an uptick to 2.6511M coins, reflecting a 0.25% increase in the last 24 hours.
Typically, increasing reserves on exchanges can signal rising selling pressure, as more tokens are being prepared for potential offloading. This could apply downward force on the price short-term if demand does not keep pace.
Source: CryptoQuant
Is Aave prepared for the upcoming rally?
While Aave’s bullish trajectory, spurred by its impressive user growth on Optimism, indicates that a breakout may be on the horizon, various cautionary signs still prevail.
Read Aave’s [AAVE] Price Prediction 2024–2025
If Aave breaks through the $165.22 resistance, it may trigger a new rally.
However, the increasing exchange reserves coupled with declining transaction counts signify potential short-term hurdles. Therefore, investors should stay alert as the market evolves.
