The cryptocurrency market is preparing for a crucial week with the upcoming release of CPI and PPI data, as Aave [AAVE] showcased positive performance.
Priced at $250.83, AAVE experienced a 1.12% increase in the last 24 hours and a 5.20% rise over the past week.
With a circulating supply of 15 million tokens, AAVE achieved a market capitalization of $3.71 billion, backed by a 24-hour trading volume of $366.86 million.
Upward Trends Favoring AAVE
AAVE’s moving averages pointed towards a bullish trend. The 9-period moving average stood at $245.64, while the 21-period moving average was at $243.10, indicating a positive crossover with the price trajectory above both levels.
This indicated potential short-term upward momentum, although resistance could be encountered in the $252-$256 range. The next hurdle is at $260, while support levels are around $243.50-$245.00.
The Relative Strength Index (RSI) registered at 52.95, suggesting neutral momentum with a slightly bullish inclination.
This reading implies that AAVE is neither in the overbought nor oversold territory, presenting opportunities for price movements in any direction.
Simultaneously, the MACD indicator displayed a moderate bullish sentiment, with the MACD line reaching 2.14 and crossing above the signal line at -3.10, although it remained below the zero line.
Open Interest Drops Amid Positive Volume Increase
An overview from Coinglass revealed a 2.21% decrease in AAVE’s Open Interest, settling at $213.97 million. This decline, a metric for active derivative contracts, hinted at a minor dip in market involvement.
Despite this, trading volume surged by 29.42%, hitting $499.94 million, indicating a mounting interest in spot markets.
Historical data indicated a spike in Open Interest from October to December, peaking close to $500 million. Since then, a gradual decline was observed, aligning with AAVE’s price stability in the $214-$271 range.
This linkage suggests a moderation in market activities as prices consolidate.
Prudent Optimism
Analysis of large transactions (≥$100,000) showcased reduced activity, with 159 transactions in the past 24 hours.
The highest transaction count over 7 days was 1,070 on February 3rd, while the lowest was recorded on February 8th with 144 transactions.
This decline highlights a decrease in high-value activities since December when AAVE was priced around $385.
Sentiment analysis signals a cautious market. Over the past week, there were 137 bullish and 142 bearish sentiments, demonstrating a slight lean towards bearishness. Historically, the sentiment has been balanced, with no clear dominance from either side.
These patterns suggest a market that is anticipating further signals from economic data and price movements.