AAVE is defying the market trend with a big rally expected in the coming days, as open interest rises.
Currently, 68.50% of top traders on Binance hold long positions, while 31.50% hold short positions.
Amidst the ongoing market uncertainty, Aave (AAVE) is outperforming market trends, attracting increasing attention from the crypto community.
Aave defies market trend
As of writing, the broader crypto market, including major assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), is struggling. Meanwhile, AAVE is leading the market with a significant bullish momentum coming in.
This upward momentum is driven by growing trader interest across the globe, as reported by analytics firm Coinglass.
According to the data, AAVE futures open interest has increased significantly in the past 24 hours, highlighting how traders are taking advantage of current market sentiment and building new positions.
AAVE Future Interest
Source: Coinglass
68% of traders go long
In addition to the on-chain metrics, Binance’s long/short AAVE/USDT ratio is currently at 2.10, indicating a very strong bullish market sentiment among traders.
On-chain data also reveals that 68.50% of top traders on Binance hold long positions, while 31.50% hold short positions.
However, this surge in AAVE participation follows a successful retest of the critical breakout level, a move that the altcoin has yet to achieve after the breakout. In short, AAVE has formed a bullish price action pattern.
AAVE Technical Analysis and Key Levels
According to AMBCrypto technical analysis, AAVE formed a bullish engulfing candlestick pattern at the crucial $290 support level but currently appears to be struggling near the $337 resistance level.
AAVE Technical Analysis
Source: TradingView Binance
$$$
Based on the recent price action and historical momentum, if Alcoin closes a daily candle above $340, there is a strong possibility of a 78% rise in the near future.
In addition to its bullish outlook, AAVE’s recent price decline is seen as a price correction, which is now showing signs of a potential recovery.
On the positive side, AAVE’s Relative Strength Index (RSI) is currently at 57, close to the overbought zone, suggesting that the altcoin has enough room to gain further bullish momentum.
