AAVE price recently tried to break through the $167 resistance level but faced a sharp correction shortly after. However, recent developments, especially the launch of the AAVE Fund by Grayscale, have created optimism about the future price action.
This renewed optimism could spark a major rally for AAVE, prompting investors to wonder if a 33% rally is on the horizon.
AAVE's rise depends on key factors.
Investor activity around AAVE suggests growing confidence in a possible recovery. Over the past three days, addresses holding between 1,000 and 10,000 AAVE have accumulated over 40,000 AAVE, worth $6 million. This significant buying activity by large holders suggests that they are taking advantage of the current low price, putting them in a good position for a potential price rally.
Historically, when this group gathers in large numbers, it often precedes an upward price movement. These gatherings indicate that institutional investors and large market players expect the upward momentum to continue in the near term.
Additionally, the overall momentum of AAVE appears favorable. Technical indicators, such as the Relative Strength Index (RSI), have bounced off the neutral line at 50.0, supporting the possibility of a recovery. The launch of Grayscaleâs AAVE Fund has also added to this bullish momentum, boosting confidence in the market.
Grayscaleâs involvement could play a crucial role in attracting institutional interest, making AAVE more attractive to a broader range of investors. With the strength reflected in the RSI and Grayscale providing greater exposure, the current market environment is conducive to a potential upside.
AAVE Price Prediction: Facing Resistance
Currently, AAVE is trading at $150, up 8% today. The altcoin is targeting immediate resistance at $153, a crucial level to break before another attempt to reach $167. This resistance has not been broken previously, but current market conditions suggest a breakout is likely in the coming days.
If AAVE price manages to turn $167 into support, the next target will be $180. From there, a rally to $200 is possible, which would represent a 33% increase and an 18-month high for the altcoin. This scenario is dependent on continued bullish momentum and additional institutional support.
However, failure to breach $153 could lead to a decline, with AAVE likely to return to $116, below its local support at $126. This would invalidate the bullish outlook and delay potential profits for investors waiting for a rally.
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