Showing signs of bullish momentum, Aave (AAVE) is poised for a significant uptrend based on recent price action analyzed on the daily chart.
During the recent market decline, AAVE found solid support at the critical level of $285, which historically has triggered substantial price reversals.
Since early December 2024, AAVE has consistently bounced off this support level, leading to notable upside rallies or price reversals on each occasion.
Despite the ongoing recovery in market sentiment, the altcoin is gaining support and appears to be positioning itself for a potential upswing.
Large AAVE Outflow of $2.5 million
The current bullish outlook for AAVE is evident as traders and investors demonstrate robust confidence in the token, as per insights from CoinGlass.
Market data indicating a $2.5 million outflow of AAVE from exchanges over the past 24 hours points to increased interest from whales and long-term AAVE holders, who are likely accumulating assets in their wallets. Such outflows usually create strong buying pressure, paving the way for an upward price movement.
Upbeat Sentiment Among Traders
Alongside the influx of whales and long-term holders, traders are displaying pronounced optimism by taking more bullish positions, signaling a positive market sentiment.
The Long/Short Ratio for AAVE currently stands at 1.14, confirming trader confidence in the upward trajectory of the token.
With prominent participation from major cryptocurrency players, the price of AAVE stood near $308.50 at the time of reporting, registering a notable 4.50% surge in the past 24 hours.
Furthermore, trading volume for the asset has surged by 12% during the same period, hinting at increased market activity.
Technical Analysis and Price Projections for AAVE
Aside from the promising market indicators, technical analysis from CryptoCrypto forecasts a potential 30% rally for AAVE. This prediction is supported by the formation of a bullish double-bottom pattern observed on the daily chart.
To realize this anticipated upsurge, AAVE must sustain its position above the $285 support level; failure to do so could negate the bullish outlook.
Currently, AAVE is trading above the 200 Exponential Moving Average (EMA) on the daily chart, signaling a positive trend in motion.