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AAVE has recently surged impressively, revealing the potential for future price increases despite looming concerns on selling pressure.
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Analyst insights suggest that a critical resistance level must be surpassed for further bullish momentum, marking a pivotal moment for AAVE.
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According to Ali Martinez, “If AAVE can break above the $342 resistance, we could see a substantial move towards $400,” indicating strong market interest.
This article analyzes AAVE’s recent price surge, exploring key metrics and expert insights while addressing potential selling pressures and resistance levels.
AAVE Bulls Are Gaining Momentum
AAVE’s recent **18% price increase** within a 24-hour frame demonstrates the token’s resilience and strong demand in the crypto market. Trading at approximately **$378**, AAVE boasts a market cap exceeding **$5.6 billion**, positioning it favorably among peers.
Crypto analyst Ali Martinez has drawn attention to a developing **Adam and Eve pattern** in AAVE’s chart, suggesting that the **$342 resistance** level is crucial. A successful breakout above this point could potentially lead to a **19%** increase in price, further solidifying AAVE’s upward trajectory.
This optimistic trend has also positively influenced AAVE’s social metrics. Rising **weighted sentiment** indicates a growing **bullish outlook** among investors, while an increase in **social volume** reflects its popularity across various platforms.
Source: Santiment
Assessing the Sustainability of AAVE’s Bullish Trend
To evaluate the longevity of this bullish movement, AMBrypto analyzed AAVE’s on-chain data, revealing increased **selling pressure** recently. Notably, the **supply of AAVE on exchanges** has risen, while the **supply off exchanges** has diminished, indicating that investors may be cashing out to secure profits.
Furthermore, the **MVRV ratio** dipped slightly following a previous uptick, suggesting potential caution among holders. This has contextual implications for future price movements, particularly as market sentiment can shift rapidly.
Source: Santiment
Additional insights from Coinglass indicate a prevalence of **short positions** in the market, as reflected in a decline in the **long/short ratio** within the last 24 hours. This trend signifies a cautious approach among traders regarding AAVE’s near-term price movements.
Should a price correction occur, it’s crucial for AAVE to defend its **$366 support level** to maintain bullish momentum towards the $400 goal. A break below this support could result in a significant drop, potentially testing the **$301** level.
Source: TradingView
Conclusion
In summary, while AAVE is currently on an upward trajectory, several factors suggest that careful observation is essential. The need to maintain support levels and monitor market sentiment will be pivotal for AAVE as it aims for the crucial **$400** milestone. Analyzing on-chain data alongside market trends will provide investors with the insights needed to navigate the fluctuations and capitalize on potential opportunities.
