Is AAVE Soaring to $400? The Hidden Potential Risks Can't Be Ignored!

AAVE has surged 18% in the last 24 hours, breaking through $378, with a market cap exceeding $5.6 billion. Analysts predict that if it breaks through the $390 resistance level, the price could sprint towards the $400 mark, sounding like a bull market party!

However, with the increase in exchange supply and a slight decline in the MVRV ratio, the market seems to be quietly releasing selling pressure. Investors are beginning to cash out, and short positions are increasing, indicating a potential pullback in the short term. If the price falls below the $366 support level, AAVE may retest the low of $301.

Although bullish sentiment is high, the accumulating risks cannot be ignored. Whether AAVE can break through the crucial $400 level in the short term remains a big question mark.

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