AAVE Price Jumps 3% Amid Low Volatility, Targets $200 After Two Years of Accumulation
The AAVE price surged by 3% during Sunday’s trading session, bucking the trend of low volatility across the broader crypto market. This powerful rally propelled the asset to a peak of $162.5, a level not seen since May 2022. This upward movement marks a significant breakout from a two-year accumulation phase, suggesting the potential for a rally toward $200.
AAVE Prepares for $200 Breakout After Extended Accumulation
Despite the consolidation trend dominating most of the crypto market, AAVE has been in a steady recovery since July 2024, forming consistent higher highs and higher lows on its daily chart. This bullish momentum has pushed the price from $71 to $158, representing a 123% gain. Consequently, AAVE’s market capitalization has risen to $2.364 billion.
The 5% intraday gain that pushed AAVE to $162.46 represents the highest price since May 5, 2022. This rally signals the conclusion of a two-year accumulation period, a milestone highlighted by Arthur, the founder of DefianceCapital. In a recent tweet, he suggested that this breakout could mark the beginning of a journey toward reclaiming AAVE’s all-time high (ATH), reflecting a broader revival in the decentralized finance (DeFi) sector.
If the daily candle closes above the critical $153 mark, buyers could drive a further 25% increase, challenging the $200 resistance level, with the potential for an extended move toward $260.
A positive alignment of the 20, 50, 100, and 200-day exponential moving averages (EMAs) indicates strong momentum behind this rally.
Data from Santiment shows that large addresses now hold 55% of AAVE’s total supply. While this level of concentration could pose a centralization risk, it also reflects accumulation by major holders, signaling their confidence in AAVE’s long-term potential.
Additionally, a reduced supply of AAVE on exchanges suggests decreasing selling pressure, a bullish indicator as fewer tokens are available for immediate sale.
However, if AAVE fails to hold above the $153 resistance level, sellers may gain the upper hand, potentially pushing the price back to the 20- or 50-day EMAs.
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