AAVE, one of the top-performing DeFi tokens, has seen an extraordinary price surge recently, gaining 420% since April. As it nears the critical $400 resistance level, the token’s rally appears to be slowing down, entering a consolidation phase. This pause, however, could signal the accumulation of more bullish momentum, potentially paving the way for a breakout to new highs.
AAVE Price Surge and Record Market Value
AAVE’s meteoric rise has been impressive, as it climbed from a low of $75 in April to nearly $400 today. This surge has propelled AAVE’s market capitalization to over $5.6 billion, securing its spot as the 27th largest cryptocurrency by valuation. The rally gained additional traction after Donald Trump’s World Liberty Financial (WLFI) selected AAVE as a service provider. WLFI also invested heavily in AAVE, purchasing 6,137 tokens worth approximately $2.28 million. This partnership, particularly due to Trump’s connections, has given AAVE a significant boost in the market.
Furthermore, AAVE’s ecosystem has witnessed a record surge in total value locked (TVL). According to DeFi Llama, the TVL has surged to over $23.2 billion, a dramatic increase from the year’s low of $7.53 billion. In ETH terms, AAVE’s TVL has soared to 5.8 million ETH, indicating strong growth that could continue.
Spike in Active Addresses and Bullish Sentiment
Alongside its price growth, AAVE has seen an uptick in active addresses. IntoTheBlock data shows that the total number of addresses with a balance has risen to over 166,000, surpassing July’s low of 160,000. This increase in activity suggests that more investors are taking part in AAVE’s growing ecosystem, driven by the fear of missing out (FOMO) as the token’s price continues its upward trajectory.
Additionally, large transactions on the AAVE network have spiked, with 828 occurring on December 16, the highest level since December 12. This indicates that more significant investors are betting on AAVE’s future potential, further boosting the positive sentiment surrounding the token.
AAVE Technical Analysis: New All-Time Highs on the Horizon?
AAVE’s technical chart reflects its bullish trend. The token has broken through key resistance levels, including the psychological $300 mark and its March high of $152.68. Currently, AAVE faces resistance at $375, with the Murrey Math Lines indicating a potential next target of $460, its October 2021 swing high.
If AAVE successfully breaks through $460, it could form a bullish flag or pennant pattern, signaling the potential for a continued rally to its all-time high of $667, representing an 80% upside from current levels.
While AAVE’s price faces resistance at $400, its strong performance, growing active addresses, and increased investor interest indicate that a breakout could be on the horizon. Investors should watch closely for a move above $460, which could confirm the bullish trend and push AAVE to new all-time highs. However, a drop below $250 would invalidate the bullish outlook, signaling a potential reversal.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Aave Considers Pulling Lending Services from Polygon Amid Security Risks Over $1B Yield Proposal
About The Author
