Amidst the recent market recovery following the dip on August 5th, Aave [AAVE] has been showing remarkable strength, outperforming various other digital assets.
Aave’s price surge has been notable, with recent movements pushing it beyond the crucial $154 resistance level.
Sustaining above this level for an extended period is essential to confirm a breakout from the 800-day range. The weekly chart illustrates Aave’s approach towards this resistance level for the second time, supported by bullish momentum.
The Wave Trend Momentum Oscillator (WTMO) indicates robust upward momentum, raising the chances of surpassing this resistance hurdle.
If Aave maintains its pattern of forming higher highs and higher lows, a successful breakout and retest could cement the $200 target as the next significant level in the medium term.
Crucially, the ability to hold above $154 is paramount for the continuation of this upward trajectory, with the WTMO signaling strong momentum to propel prices upwards.
Aave’s Increasing Adoption Catalyst for Price Surge
The momentum displayed by Aave extends beyond its price surge into its Total Value Locked (TVL), which has been steadily climbing since the year’s commencement.
Although there was a period of stagnation between April and July, Aave’s TVL is once again on the rise. Presently, the TVL stands at $19.6 billion, with the total borrowed amount through Aave’s protocol reaching $7.748 billion.
This substantial growth underscores Aave’s prominence in the DeFi sector. The ascending TVL and borrowed assets reflect a growing adoption and trust in Aave, laying additional groundwork for potential price attainment of $200 by year-end.
In tandem with robust price performance and escalating TVL, there has been an uptick in whale accumulation, exerting significant upward pressure on Aave’s price. Insights from Hyblock Capital reveal that the current whale vs. retail delta metric stands at 74%, signifying substantial Aave accumulation by whales.
Moreover, the net long shorts delta currently registers at 84%, further reinforcing the likelihood of Aave approaching the $200 milestone before the year concludes.
The alignment of whale accumulation and strong net long positions speaks volumes about the bullish sentiment surrounding Aave.
Activity Across Addresses
Lastly, the number of addresses holding Aave has been steadily increasing, spanning from retail investors to whales, and encompassing both short-term and long-term holders.
The monthly alteration in addresses by holdings indicates consistent growth, notwithstanding slight downturns in holders with $10K to $100K and $100K to $1M worth of Aave, witnessing a decrease of 9.09% and 6.67% respectively.
Notwithstanding these minor fluctuations, the overall trend remains positive, with Aave’s adoption trajectory continuing upwards. The escalating adoption, coupled with whale accumulation, rising TVL, and bullish price performance, paint a promising picture for Aave’s journey towards the $200 mark.