Could Grayscale’s Launch Trigger a 33% AAVE Price Rally?

The AAVE price recently made an attempt to surpass the $167 resistance level, but quickly encountered a steep correction. Nevertheless, the recent news, especially the launch of Grayscale’s AAVE Trust, has fostered optimism regarding the token’s future price trajectory.

This reinvigorated bullish sentiment could potentially ignite a substantial rally for AAVE, prompting investors to speculate whether a 33% increase is on the horizon.

Factors Influencing AAVE Rally

Investor activity surrounding AAVE indicates a growing sense of confidence in the altcoin’s potential revival. In the past three days, wallets containing between 1,000 and 10,000 AAVE have accumulated over 40,000 AAVE, valued at approximately $6 million. This notable buying from significant holders suggests they are taking advantage of the current lower prices to position themselves for a future price increase.

Historically, significant accumulation by this group often precedes upward price movements. This collection of assets indicates that institutional investors and larger market participants anticipate continued bullish momentum in the near future.

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Moreover, the macro momentum surrounding AAVE seems favorable. Key technical indicators, such as the Relative Strength Index (RSI), have rebounded off the neutral line at 50.0, reinforcing the likelihood of recovery. The introduction of Grayscale’s AAVE Trust has further bolstered this bullish sentiment, enhancing market confidence in the altcoin.

Grayscale’s engagement could significantly influence institutional interest, making AAVE more attractive to a wider range of investors. With the RSI indicating strength and Grayscale offering increased visibility, the current market atmosphere is favorable for a possible rally.

AAVE Price Forecast: Challenging the Resistance

Currently, AAVE is trading at $150, marking an 8% increase today. The altcoin is aiming for the immediate resistance level at $153, which is essential to surpass before attempting another challenge at $167. This level has previously remained unbroken, but the prevailing market conditions suggest a potential breakthrough in the coming days.

If AAVE successfully converts $167 into support, the subsequent target would be $180. From there, a rise to $200 could be feasible, representing a 33% increase and establishing an 18-month high for the altcoin. This scenario depends on maintaining bullish momentum and securing further institutional backing.

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Conversely, failing to breach $153 could trigger a downward trend, with AAVE potentially retreating to $116, which is below its local support of $126. Such a scenario would negate the optimistic outlook and postpone any potential gains for investors awaiting an upswing.