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Highlights
- Aave price could surge by 140% in the next few weeks to reach $400.
- AAVE is currently trading at prices not witnessed since April 2022.
- Whale activity spiked 104%, while there are three times more AAVE Longs than Shorts on the weekly timeframe.
Aave price has captured attention with a sharp 111% price rally since its August 5 low, and market indicators suggest even greater gains may be on the horizon. A surge in whale activity, with large holders accumulating significant amounts of AAVE, has fueled speculation of a potential price rally. Recently, the asset broke through a key bullish reversal pattern, raising expectations for a potential 140% surge in the short to mid-term.
Much of the excitement surrounding Aave is linked to its rumored association with the newly launched World Liberty Financial (WLFI), reportedly connected to Donald Trump. This hype, along with intensified whale activity—highlighted by one major investor acquiring over 60,000 AAVE in just four days—has driven the asset to its highest levels in over two and a half years. Could Aave be on the verge of another explosive rally?
Onchain Metrics Hint At Continuation Of Aave Price Rally
A large investor recently purchased 12,633 AAVE ($2.02 million) today, bringing their total portfolio balance to 60,624 AAVE ($9.36 million). This buying spree, which lasted over the past four days, may have contributed to the price of AAVE increasing by about 10%.
The whale bought another 16,818 $AAVE($2.59M) 3 hours ago and deposited it into #Aave.
Then he borrowed 2M $GHO to buy more $AAVE.
This whale bought a total of 47,991 $AAVE($7.45M) in just 2 days.https://t.co/Aj7wIlf5SJ pic.twitter.com/gVPGFE8W6S
— Lookonchain (@lookonchain) October 14, 2024
Data from IntoTheBlock analytics shows a surge in the number of large transactions around Aave from 63 to 129 in the last seven days. This is a 104% increase, suggesting that large investors are getting particularly interested in the Aave token.
Additionally, Santiment data shows the 30-day Realized Cap decreased throughout October, while its corresponding 365-day metric has been increasing. This discrepancy suggests a shift in investor behavior where recent investors, possibly those who bought within the last month, sell their holdings. In contrast, long-term investors are holding onto their assets or even accumulating more.
The selling pressure from short-term investors could lead to a temporary price decline. However, the continued accumulation by long-term holders might provide a floor for the Aave price, preventing a significant drop and potentially leading to a rebound.
Derivative Traders Are Bullish on AAVE
A look at traders’ behavior suggests that they are bullish on the price of AAVE. The Coinglass Liquidation Map data shows an overwhelmingly more cumulative Long Liquidation Leverage and the corresponding shorts. There are $5.29 million in Shorts versus $16.48 million in Longs. The imbalance shows bullish sentiment is dominating the market because traders anticipate further upside potential for the Aave price.
The price of AAVE has increased by 3.9% in the last 24 hours and is trading at $165.20. Technical analysis shows a breakout from a bullish cup and handle pattern, hinting at a staggering 2.4X in the coming weeks.
AAVE Technical Analysis: Can Aave Reach $400?
The recent rise in Aave price has caught attention due to significant whale activity, technical bullish indicators, and the general crypto market sentiment.
The chart shows a classic cup-and-handle formation, which is typically a bullish continuation pattern that signals the resumption of an upward trend after a period of consolidation.
AAVE price is likely to find resistance at $230, which aligns with previous highs and is the first measured move target based on the height of the cup, and $400, based on the full breakout potential of the pattern, representing a 140% upside from the current price.
The relative strength index (RSI) is moving into overbought territory due to the recent breakout, which may signal a short-term pullback or consolidation phase before the next leg up.
Conversely, there is support at the $120-$130 range, which was previously a resistance zone and now acts as a base for further upward movement. However, if the price falls further, the strong support around $80, which aligns with the lower boundary of the handle structure, can hold the Aave price up.
Frequently Asked Questions (FAQs)
1. Why is AAVE price rising?
2. How much has whale activity increased around Aave?
3. Can Aave price reach $400?
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