Aave [AAVE] is showing resilience in the current cryptocurrency market landscape, demonstrating superior performance compared to many other digital assets following the market downturn on August 5th.
The price of Aave has been steadily climbing, with recent movements pushing it above $154, a critical resistance level for the coin.
In order to confirm a breakout from the 800-day range, it is essential for the price to maintain levels above this threshold for an extended period. Analysis of the weekly chart indicates Aave is approaching this resistance for the second time, backed by a strong bullish trend.
The Wave Trend Momentum Oscillator (WTMO) is signaling robust upward momentum, increasing the likelihood of Aave surpassing this resistance level.
If Aave continues its pattern of forming higher highs and higher lows, a potential breakthrough and subsequent retest could establish $200 as the next significant target in the mid-term.
Crucially, the sustainability of this upward momentum hinges on Aave’s ability to hold above the $154 mark, a factor supported by the strong momentum indicated by the WTMO pushing prices higher.
Adoption Growth Propels Aave’s Price Surge
While Aave’s price surge is evident, its Total Value Locked (TVL) has shown a consistent upward trajectory since the year commenced.
Although there was a period of stagnation between April and July, Aave’s TVL is once again on the rise. Presently, the TVL is positioned at $19.6 billion, with the total borrowed amount through Aave’s protocol standing at $7.748 billion.
This substantial growth underscores Aave’s prominence within the DeFi sector. The increasing TVL and borrowed assets underscore growing adoption and trust in Aave, lending credence to the notion that the $200 price target may be achievable before the year concludes.
In addition to the robust price action and escalating TVL, institutional investors are showing a growing interest in Aave, exerting significant upward pressure on its valuation. Data from Hyblock Capital indicates that the current whale vs. retail delta metric is at 74%, indicating a notable accumulation of Aave by institutional players.
Moreover, the current net long shorts delta stands at 84%, further reinforcing the possibility of Aave breaching the $200 threshold by year-end.
The conjunction of whale accumulation and positive net longs reflects a bullish sentiment surrounding Aave.
Address Activity Trends
Notably, there has been a consistent rise in the number of addresses holding Aave, spanning from retail investors to institutional whales and from short-term to long-term holders.
Monthly changes in addresses by holdings exhibit a consistent uptrend, albeit minor declines for holders with $10K to $100K and $100K to $1M worth of Aave, recording decreases of 9.09% and 6.67%, respectively.
Despite these marginal setbacks, the overall trajectory remains positive, with Aave’s adoption gaining momentum. The synergy of increasing adoption, institutional accumulation, rising TVL, and bullish price movements indicates a promising path for Aave towards the anticipated $200 milestone.