Aave (AAVE) appears to be on the verge of a significant bullish breakout, as recent price action suggests strong momentum for an upside rally. Following a crucial price drop, the DeFi token has bounced back from a key support level, reinforcing optimism among investors and traders.
Key Support at $285 Holds Strong
During the recent market downturn, AAVE fell to the $285 support level—a historically significant zone where the asset has consistently rebounded. Since early December 2024, every test of this level has resulted in a sharp price reversal or a sustained rally. The market sentiment now appears to be improving, providing additional support for the altcoin’s bullish trajectory.
$2.5 Million AAVE Outflow Signals Whale Accumulation
AAVE’s growing bullish momentum is further supported by strong investor confidence. According to data from CoinGlass, centralized exchanges have recorded an outflow of approximately $2.5 million worth of AAVE in the past 24 hours.
A sustained outflow from exchanges typically signals accumulation by whales or long-term holders, as they withdraw tokens to private wallets rather than keeping them on exchanges for quick trades. This pattern often creates significant buying pressure, setting the stage for a potential rally.
Traders Betting Big on AAVE
Adding to the bullish sentiment, traders are placing strong bets on AAVE’s upward movement. The Long/Short Ratio currently stands at 1.14, indicating that traders are heavily favoring long positions. At the time of writing, AAVE is trading around $308.50, marking a 4.50% surge in the past 24 hours. Additionally, its trading volume has seen a 12% increase, highlighting growing market activity.
Technical indicators also point to a major breakout. AMBCrypto’s analysis suggests that AAVE is forming a bullish double-bottom pattern on the daily chart. If the token maintains support above $285, it could see a 30% price rally in the coming days.
Also Read: Aave (AAVE) Signals Bullish Breakout Amid Market Recovery
Moreover, AAVE is currently trading above the 200-day Exponential Moving Average (EMA), a key indicator of an uptrend. If bullish momentum continues, AAVE could be primed for a strong breakout, attracting even more investor interest.
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.
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