AAVE’s recent surge demonstrates the altcoin’s strength in the competitive crypto market and provides a strong backdrop for potential gains.
Trading at $202.53 today, AAVE is approaching important resistance levels, supported by strong trading metrics.
“The market is showing promising signals for AAVE. Both individual and institutional interest is increasing,” according to COINOTAG.
AAVE is showing bullish momentum, breaking through accumulation barriers and starting to test major resistance levels as positive on-chain metrics boost traders’ confidence.
AAVE’s price action has caught the attention of investors and has seen a significant breakout from its previously established accumulation phase. Currently trading at $202.53, the token is heading toward the critical resistance level at $250. This level has historically been challenging for AAVE, so there are some question marks over its ability to sustain its upward momentum.
Notably, the Relative Strength Index (RSI) is at 65.86, which points to a strong bullish trend but suggests that AAVE is starting to approach the overbought territory. This suggests that although the current rally may continue, the token may face some resistance before it surpasses the $250 level.
On-chain analysis is showing strong signals supporting AAVE’s bullish momentum. Network growth data recently increased by 0.55%, reflecting the increasing interest and activity in the AAVE ecosystem. This increase creates a positive impression that broader market interest is driving price increases.
Additionally, the “In the Money” metric is up 1.49%, indicating that traders are holding profitable positions, which is generally a bullish sign. The Concentration metric is up 0.34%, while a 4.09% increase in large transactions indicates solid demand from both institutional and retail investors, providing a positive outlook for AAVE’s price action.
The market has seen major liquidation activity of $82.5k in short positions and $115.27k in long positions. This increased liquidation rate indicates increased volatility around AAVE. Such activity can accelerate price volatility as traders close out their positions.
As liquidations for long and short positions increase, the likelihood of rapid price movements increases. If the bulls maintain their momentum, this could push prices higher; otherwise, if bearish sentiment prevails, it could lead to pullbacks.
Open interest in AAVE options has increased by 10.35%, totaling $186.22 million. This increase reflects growing confidence among investors, with many investors bracing for potential bullish moves in AAVE’s price. Increased open interest indicates increased interest and activity in an asset and can be a precursor to significant price swings.
As AAVE approaches resistance levels, this increased open interest could increase volatility and likely amplify price movements both to the upside and downside.
AAVE’s current bullish trend is supported by significant price action and positive on-chain metrics, suggesting potential for new highs. However, the $250 resistance remains a major hurdle. If AAVE breaks through this resistance level, it could trigger a rapid rally to higher prices. Traders are advised to keep a close eye on whether AAVE can sustain its momentum.