Aave’s recent surge of over 32% has catapulted the altcoin to unprecedented heights, reaching a three-year high as market dynamics shift.
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Aave has surged over the past 24 hours to hit a three-year high of $359.
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The coin’s mean dollar invested age has dropped as old coins entered circulation, indicating significant activity from long-term holders.
Over the past 24 hours, Aave [AAVE] has experienced a strong upward momentum, rising from $269 to a 3-year high of $359. At the time of writing, Aave was trading at $353, marking a 32.82% increase on daily charts.
The recent rally has prompted analysts to explore potential driving factors. According to Santiment, the significant decline in the “mean dollar invested age” is a crucial contributor to Aave’s uptrend.
Aave’s Price Surge: A 3-Year High
According to Santiment, Aave’s jump past the $300 threshold for the first time in three years is primarily due to big dormant investors moving their previously stagnant coins back into circulation.
Source: Santiment
As the mean dollar invested age declines, this indicates that significant stakeholders are starting to circulate their former holdings, thereby reinforcing bullish momentum for the altcoin. If this trend continues, the rally could maintain strong upward pressure.
This activity has been particularly noticeable in recent hours, with Blockchain Capital actively participating in the market.
Source: SpotOnChain
According to SpotOnChain, Blockchain Capital deposited 16,964 Aave tokens valued at $5.06 million into FalconX after a two-year dormancy period.
This activity from previously dormant wallets is critical for fueling the rally, enhancing market liquidity and driving network activity.
Source: Lookonchain
While existing large holders reinvigorate their holdings, new market entrants are also making significant moves. World Liberty has recently purchased 3,357 Aave tokens in just the past day at an average price of $297.8.
With big holders accumulating and dormant whales reactivating their assets, the upward trajectory of Aave might have considerable potential.
Nonetheless, it is important to consider the possibility of a market retrace if substantial wallets decide to pause their activities.
Assessing Aave’s Sustained Uptrend
Aave is currently positioned within a robust uptrend, driven by the resurgence of dormant whales.
With increasing buying pressure and bullish sentiment, the altcoin could experience additional price gains.
Read Aave’s [AAVE] Price Prediction 2024-25 for more insights.
If the current positive market sentiment persists, Aave may encounter a critical resistance level around $378. A breakout above this threshold could propel the altcoin towards $400.
Conversely, should larger wallets halt their release of older coins, a price retraction could see Aave drop to approximately $297.
Conclusion
Aave’s recent performance underscores a pivotal moment in the altcoin’s market trajectory, driven by key players reactivating their holdings. While bullish momentum is evident, investors must remain vigilant regarding potential market corrections. A careful analysis of trading patterns and market sentiment will be essential in navigating Aave’s path forward.
