AAVE has been on an impressive run recently, raising hopes that price gains could continue, but concerns about selling pressure from digital asset investors are increasingly notable.
According to analysts, a critical resistance level needs to be broken for AAVE to continue its rise. This stage marks a significant turning point for AAVE.
“If AAVE can break above the $342 resistance level, we could see a big move towards $400,” crypto analyst Ali Martinez said, indicating that interest in AAVE is growing.
This article examines AAVE’s recent price increase, key metrics, and expert commentary, while also examining possible selling pressures and resistance levels.
AAVE has shown a strong demand and durability with its 18% price increase in the last 24 hours. Currently trading at $378, AAVE stands out among its competitors with a market value of $5.6 billion.
Crypto analyst Ali Martinez points out the Adam and Eve pattern developing on the AAVE chart, noting that the $342 level is a very important resistance. Breaking this level could boost the price of AAVE by 19%, strengthening the uptrend.
Positive developments are also reflected in AAVE’s social metrics. While the increase in weighted sentiment values indicates an increase in bullish expectations among investors, the increase in social volume on social media platforms also shows the popularity of AAVE.
To assess the sustainability of this bullish move, AMBrypto examined AAVE’s on-chain data, revealing that selling pressure is increasing. Specifically, the supply of AAVE on exchanges has increased, but the supply on exchanges has decreased, suggesting that investors are cashing out, securing their profits.
Additionally, the MVRV ratio has slightly decreased following the previous increase, indicating a cautious approach among investors. This change suggests that market sentiment can change rapidly and affect future price movements. According to Coinglass data, short positions have increased and the long/short ratio has decreased in the past 24 hours, suggesting that investors are cautious about AAVE’s short-term price movements.
If there is a price correction, it will be critical for AAVE to hold the support level at $366. If this support is broken, the ongoing bullish momentum towards the $400 target may weaken and a test of the $301 level is possible.