AAVE's price has surged by 18% in the past 24 hours.
The token's selling pressure has increased, suggesting a slight price correction.
AAVE has performed excellently in the past 24 hours, with its price rising double digits. As predicted by a well-known analyst, the recent upward trend may push the token price further above $400.
Therefore, AMBCrypto evaluated its indicators to determine if the path forward is clear.
AAVE bulls are taking action.
AAVE decouples from top cryptocurrencies as its price rises by 18% in the past 24 hours. As of the time of writing, its trading price is $378, with a market value of over $5.6 billion.
Famous cryptocurrency analyst Ali Martinez tweeted, suggesting that if a certain condition is met, the token's price may see similar growth. According to the tweet, an Adam and Eve pattern is forming on the token's chart. If it successfully breaks through the resistance zone at $342, the token price could soon surpass $400.
Specifically, Martinez mentioned that a breakout could lead to a 19% price increase. Fortunately, the token successfully broke out, and as of the time of writing, it is moving towards the $400 mark.
The recent price increase has also positively impacted the token's social metrics. For instance, its weighted sentiment has entered positive territory, indicating that bullish sentiment around AAVE is on the rise.
Its social volume has also increased — a clear sign of the token's popularity in the cryptocurrency market.
The likelihood of AAVE maintaining its growth.
Subsequently, AMBrypto examined the token's on-chain data to understand whether this bull market will persist. According to the analysis, recent selling pressure seems to have increased.
The supply of AAVE on exchanges has increased, while the supply off exchanges has decreased. Whenever this happens during a bull market, it indicates that investors are taking profits, which often leads to a price correction.
Another bearish indicator is the MVRV ratio, which has slightly declined after a promising increase on December 23.
Similar to the above indicators, Coinglass data shows that there are more short positions than long positions in the market, as the long/short ratio of the token (4 hours) has decreased in the past 24 hours.
If a price adjustment occurs, it will be crucial for AAVE to test its support level at $366 in order to rebound towards $400 in the coming days.
However, if the token falls below the support level, its price could drop back to $301.
