The recent price action of Aave [AAVE] has been quite impressive, especially on the 4-hour chart, where it managed to break out of a descending triangle pattern.
This breakout signifies the continuation of the uptrend that commenced back in August. After a period of consolidation lasting 2 years, Aave’s price is now showing an upward trajectory, with a recent surge of more than 5%, pushing it above the $160 threshold.
The breakout from the accumulation phase indicates a possible push towards the $200 mark, a significant target that was missed during the initial breakout.
If the current market momentum persists, there is a chance that this level could be surpassed by the year’s end.
On the USDT pair, there have been three recent rejections near the $135 level. The third rejection led to a breakout above the upper trendline of the descending triangle, adding more strength to the bullish sentiment.
As Bitcoin climbs back above $64K, it has paved the way for altcoins to make a strong rally in the final quarter of the year.
Increasing Share of Aave’s Active Loans
The dominance of Aave in the DeFi lending sector has been steadily expanding.
Over the last six months, Aave’s portion of active loans has grown from 58% to 70%, solidifying its position as a major player in the market.
Aave’s dominance in Sky Force has surged from 70% to 83%, indicating that the token is gaining traction and potentially gearing up for a surge beyond $200, powered by its successful lending operations and positive market sentiment.
Notable Whale Activity
There has also been significant bullish activity from whales, with a recent purchase of 47,991 AAVE tokens valued at $7.45 million.
This whale initially acquired 31,173 tokens worth $4.8 million, and then added another 16,818 tokens valued at $2.59 million, showcasing high confidence in AAVE’s future performance.
These actions from the whale suggest a possible move towards the $200 level, even amidst the volatile market conditions.
Steady Rise in Long-Term Holders
Furthermore, the composition of holders reinforces the bullish outlook. Long-term holders have been consistently increasing since July 2022, while short-term traders have been on the decline.
This shift indicates that weaker hands are exiting the market, leaving the more confident long-term holders in place.
With fewer short-term traders, there may be less selling pressure, facilitating a smoother increase in the token’s price.
All indications point towards an upward movement, with a potential surge past $200 by the end of the year.
Aave’s solid market position, accumulation by whales, and growing base of long-term holders hint at a continuation of the bullish trend.