After experiencing a sharp decline, the cryptocurrency market is showing signs of recovery. Among the top-performing assets, Aave (AAVE) is gaining momentum, with technical indicators suggesting a potential double-digit price surge in the near term.
AAVE Technical Analysis: A Bullish Setup
Recent analysis reveals that AAVE is forming a bullish double-bottom pattern, signaling a potential breakout. The pattern is yet to be fully confirmed, but strong investor support has helped AAVE establish a solid second bottom, triggering upside momentum.
According to technical projections, if AAVE maintains its support level above the second bottom, the price could surge by 25%, reaching the neckline resistance at $375.
Further supporting this bullish outlook, AAVE’s Relative Strength Index (RSI) currently stands at 52, indicating growing buying pressure. This suggests that traders are accumulating AAVE, potentially pushing the price higher in the coming days.
Also Read: Why Aave (AAVE) is Positioned for a 150% Breakout: Strong Governance and Bullish Technicals
On-Chain Metrics Indicate Strong Accumulation
Data from Coinglass and IntoTheBlock indicate significant bullish activity surrounding AAVE. Over $3.5 million worth of AAVE tokens have been withdrawn from exchanges, a trend often associated with long-term accumulation.
Additionally, AAVE’s open interest (OI) has surged by 7.5% in the past 24 hours, reflecting increased trading activity. The Long/Short Ratio stands at 1.13, indicating that long positions currently outnumber short positions, further reinforcing bullish sentiment.
AAVE Price Momentum and Market Outlook
Currently, AAVE is trading at approximately $317, having surged over 10% in the past 24 hours. Trading volume has also spiked by 20%, reflecting heightened investor interest.
With a strong technical setup and rising on-chain activity, AAVE appears poised for further gains. If the bullish momentum sustains, AAVE could test key resistance levels, potentially making it one of the standout performers in the ongoing market recovery.
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.