AAVE’s price fundamentals are strong and it is gaining widespread acceptance around the world. Since August 5, its market cap has jumped from $1.2 billion to $1.9 billion, moving it up to 40th in the global cryptocurrency rankings.
Derivatives markets show bullish heat
AAVE is currently in a bullish trend as its price rises. Derivatives trading volume increased by 150% to $731 million in 24 hours.
Open interest also showed an upward trend, increasing by 49% to a total of $169.5 million. Meanwhile, the long-short ratio was 1.10, indicating that bulls were in a dominant position. In the past 24 hours, short liquidations amounted to $1.1 million, while longs were $2.2481 million.
What does the AAVE price structure reveal?
Over the past 24 hours, AAVE has seen an intraday increase of 14%, breaking above the upper limit of its long-term range at $115. As of this writing, it is trading at $134.20.
AAVE price has broken above the dynamic resistance band of 50-day and 200-day EMA. AAVE has gained more than 36% in the past seven days as it rebounded from the $90 support level, catching the attention of investors.
In the longer term, AAVE has broken out of the $80 to $120 range that it has been in for the past 12 months. If it can stay above this level, the rally is likely to continue.
In the bullish scenario, AAVE could test the target levels of $134.01 and $145.01 in the near term. Conversely, a break below $115 could lead to a correction in which the bears could target $108 and $98.
Meanwhile, the MACD has formed a bullish crossover above its zero line with a positive histogram of 2.51. The RSI is above its midline at 70.88, entering the overbought zone and may act as a brake on the upside.
Want to get more exclusive market analysis and practical strategies? Check out my 🐷Ye and let’s seize the next wave of opportunities together.
