Aave Price Rally: Bullish Breakout Signals Potential 2X Gains
Aave’s recent price action has captured the attention of investors, surging 111% since its low on August 5. The asset recently broke out of a bullish reversal pattern, hinting at the possibility of doubling in value in the short to mid-term. Much of the buzz surrounding Aave is tied to its association with World Liberty Financial (WLFI), a newly launched venture linked to Donald Trump.
The hype surrounding WLFI has propelled Aave to price levels not seen in over two and a half years. Alongside this surge, whale activity has intensified, with one major investor acquiring more than 60,000 AAVE tokens within four days. This growing whale accumulation has many wondering: Is another price breakout just around the corner?
On-Chain Metrics Indicate a Potential Rally Continuation
A notable large investor purchased 12,633 AAVE tokens today, worth approximately $2.02 million, bringing their total holdings to 60,624 AAVE ($9.36 million). This recent accumulation has coincided with a 10% increase in Aave’s price over the past few days.
According to IntoTheBlock analytics, the number of large AAVE transactions has jumped from 63 to 129 in just one week—a 104% increase. This surge suggests heightened interest from institutional or high-net-worth investors.
Additionally, data from Santiment shows diverging trends between Aave’s 30-day and 365-day Realized Caps. The 30-day metric has been trending downward throughout October, indicating that short-term traders are selling. Meanwhile, the 365-day metric continues to rise, hinting that long-term holders are either retaining or expanding their positions.
While the selling pressure from short-term investors could trigger minor corrections, the ongoing accumulation by long-term holders may create a support level, limiting any significant decline and setting the stage for a potential rebound.
Derivative Traders Align with Bullish Sentiment
Market behavior among derivative traders suggests that optimism around Aave’s price is growing. Data from Coinglass Liquidation Map reveals that long positions significantly outnumber short positions, with $16.48 million in longs compared to just $5.29 million in shorts. This imbalance reflects a strong bullish sentiment, as traders seem to anticipate further upward movement in Aave’s price.
Over the past 24 hours, AAVE has gained 3.9% and is now trading at $165.20. A technical breakout from a cup-and-handle pattern supports the case for continued upside, with projections pointing toward a potential 2.4X increase in the coming weeks.
Can Aave Hit $400?
Aave’s price rally is fueled by whale accumulation, favorable technical indicators, and positive market sentiment.
The chart reveals the formation of a cup-and-handle pattern, which is often a signal for bullish continuation following a period of consolidation. Based on this pattern, the next major resistance level is expected around $230, aligning with previous highs. Should AAVE break through this level, the final target of $400—representing a 140% upside from current prices—becomes a plausible goal.
However, Aave’s Relative Strength Index (RSI) is moving toward overbought territory, which could lead to a brief pullback or consolidation before the next leg higher. On the downside, the $120-$130 zone—formerly a resistance level—now serves as a strong support base. If selling pressure increases, AAVE may test the $80 level, which coincides with the lower boundary of the handle formation, providing additional support.
Conclusion: Bullish Momentum with Room to Run
Aave’s current price momentum, supported by whale accumulation, bullish technical patterns, and optimistic market sentiment, indicates that the asset may continue to rally. While short-term corrections are possible, the overall trend remains upward, with targets of $230 and $400 in sight. Investors are closely monitoring key support levels, with the hope that Aave’s bullish trajectory will persist, potentially leading to substantial gains in the weeks ahead.
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