Aave [AAVE] is thriving amid the current market climate, outperforming many other crypto assets as the market recovers from its August 5 price drop.
Aave price continues to rise steadily, and recent trading activity has taken the price above $154, a key resistance level.
To confirm a breakout above the 800-day range, price needs to stay above this level for an extended period of time. The weekly chart shows Aave approaching this resistance level for the second time, supported by positive bullish momentum.
The Wave Trend Momentum Oscillator (WTMO) indicator shows strong bullish momentum, increasing the possibility of a breakout of this resistance.
If Aave continues to form higher highs and higher lows, a breakout and retest could solidify the $200 target as the next important level in the medium term.
However, staying above $154 is essential for this bullish momentum to continue, as WTMO shows the strength to push the price higher.
Aave Adoption Increases Drive Price Higher
Aave's success isn't just reflected in its price action; its Total Value Locked (TVL) has been growing steadily since the start of the year.
Despite a period of stagnation between April and July, Aaveâs TVL is now on the rise again. Currently, TVL is at $19.6 billion, while the total amount borrowed through the Aave protocol has reached $7.748 billion.
This strong growth shows Aave's position as a key player in the DeFi space. The increased TVL and assets borrowed reflect increased adoption and confidence in Aave, further bolstering the case for a price of $200 before the year ends.
Additionally, whales are increasing their buying, creating significant upward pressure. Data from Hyblock Capital shows that the arbitrage ratio between whales and retail investors is currently 74%, indicating that whales are accumulating Aave at a significant rate.
Additionally, the spread between long and short positions is at 84%, further strengthening the case that Aave could hit $200 before the year is out.
The convergence between whale buying activity and strong long positions shows bullish sentiment around Aave.
Address activity
Finally, Aave has seen a steady increase in the number of addresses holding the Token, particularly from retail investors to whales, as well as from long-term to short-term Holders.
The monthly change in addresses by holding volume shows continued growth, although there is some slight decline for Holders between $10,000 and $100,000 and Holders between $100,000 and $1 million.
These two categories recorded decreases of 9.09% and 6.67% respectively.
Aave adoption continues to increase, despite a slight dip. This increase, combined with whale buying, rising TVL, and bullish price momentum, suggests that Aave is well on its way to the $200 mark.
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