AAVE price surged to $162.46, marking the end of a two-year accumulation phase and could surge to $200 if the daily chart closes above a critical resistance level.
AAVE price surged 3% during Sunday’s training session, defying the overall low volatility momentum in the cryptocurrency market. This high-momentum rally pushed the asset to a peak of $162.5, a level not seen since May 2022. The move indicated a major breakout from the two-year accumulation phase, signaling a potential rally to $200.
After two years of accumulation, AAVE price is expected to surge to $200
Contrary to the trend of the ongoing consolidation in the cryptocurrency market, AAVE price has been recovering since July 2024, with new highs and lows forming on the daily chart. The bullish trend has taken the asset from $71 to $158, an increase of 123%. At the same time, the market capitalization has surged to $2.364 billion.
AAVE price surged 5% intraday to a high of $162.46, a level last seen on May 5, 2022. The rise marks the end of a two-year accumulation trend, a point also highlighted by DefianceCapital founder Arthur. According to his tweet, the breakout could herald a potential return to new all-time highs (ATHs), marking an important moment in the ongoing DeFi recovery.
If the daily chart closes above $153, buyers could push the price up by 25% to challenge the $200 resistance level and subsequently continue to rise to $260.
The positive alignment between the daily exponential moving averages (20, 50, 100 and 200) suggests momentum in the action.
According to Santiment data, the percentage of AAVE held by top addresses has steadily climbed to 55%. While high values can indicate centralization risk, they also indicate the accumulation trend of large holders and their confidence in future trends.
Additionally, the relatively low supply of AAVE on exchanges suggests reduced selling pressure, which is generally a bullish sign as there are fewer tokens available to sell immediately.
Conversely, if AAVE price fails to sustain the $153 resistance breakout, the sellers could push for a bearish correction towards the 20-day or 50-day EMA.
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