Sep 23, 2024

6thTrade

AAVE saw an impressive 20% surge on Wednesday, climbing to $170—a price not seen since May 2022. After being in accumulation for over two years, this rise has piqued the interest of traders and analysts who believe there’s more room for growth. $AAVE

AAVE’s Strong Recovery in 2024

Since July 2024, AAVE has steadily gained momentum, with its price rising from $72 to $170, marking a 125% increase in just a few months. This rally has caught the attention of traders, especially given the broader market's low volatility and consolidation.

End of AAVE’s Accumulation Phase?

According to Arthur, the founder of DefianceCapital, AAVE may have reached the end of its nearly 900-day accumulation phase. He points to a key technical signal: the asset is forming higher highs and higher lows on its daily chart, a classic sign of bullish momentum.

Crypto analyst TraderKoz also highlighted AAVE’s strong bounce from the accumulation zone, reinforcing the positive sentiment. He’s optimistic about the asset’s short-term potential, predicting that AAVE is poised for a significant price jump in the coming trading sessions. His view aligns with the broader market consensus that AAVE could be primed for a major price surge.

In fact, CoinCodex data suggests AAVE might climb as high as $536 by October 2024, a potential increase of 232%. Technical indicators and market momentum seem to support this bullish outlook.

Rising Total Value Locked (TVL)

A key factor driving optimism around AAVE is its growing Total Value Locked (TVL). Since January 2024, AAVE’s TVL has almost doubled, now standing at $12.181 billion. This surge in TVL reflects a growing interest from investors, which often leads to upward price pressure. As decentralized finance (DeFi) continues to experience renewed enthusiasm, AAVE appears to be benefiting from this resurgence.

Moreover, data from Santiment shows that large holders now control 55% of AAVE’s total supply. While this concentration might suggest some level of centralization, it also signals confidence from major investors, often referred to as “whales.” These big players have been steadily accumulating AAVE, indicating strong belief in its future performance.

Momentum Indicators and Price Targets

AAVE’s bullish momentum is further supported by its daily exponential moving averages (20, 50, 100, and 200), all of which point to a strong upward trend. If the price can break above the $200 resistance level, many analysts believe that AAVE could quickly rise toward $260 in the near term.

Transaction volumes for AAVE are also on the rise, with the profit-loss ratio standing at an impressive 4.472, suggesting that most trades are closing in profit. This profitability has bolstered the confidence of holders, as larger investors continue to increase their exposure to the asset.

If AAVE manages to close a daily candle above $153, some analysts predict that it could pave the way for a move toward the $200 resistance level.

A Bright Outlook for AAVE

Looking ahead, the outlook for AAVE remains positive. CoinCodex predicts further gains in October 2024, despite the Fear & Greed Index sitting at a neutral 52. AAVE has closed higher on 13 of the past 30 days, demonstrating consistent strength.

In summary, AAVE’s recent performance, along with rising TVL and increased interest from major investors, suggests that the asset is positioned for continued growth. If market conditions remain favorable, AAVE could see significant upside in the months ahead.

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Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.