Will AAVE Continue its Surge After Crossing $150?
Recently, Aave [AAVE] broke past the $150 mark, signaling a new phase and achieving its highest price in a year.
Experts suggest that maintaining levels above $154 might propel Aave towards $260, a potential surge of 75% from its current value at the time of writing.
While Aave faced slight resistance at $154, this is common at critical resistance points. The resilience in Aave’s price movements hinted at a temporary halt before further upward momentum.
The MACD indicator, previously bearish since August, has now turned bullish, signaling a possible uptrend. Aave started September with vigor, hitting a new peak for 2024.
Noteworthy Retail Long Positions
A comparison of AAVE’s performance with retail long positions for BTC/USDT and AAVE/USDT by Hyblock Capital reveals intriguing insights.
Only 22% of retail accounts were in long positions currently, but Open Interest witnessed a steady increase.
This pattern, reminiscent of a prior price dip preceding a surge, indicates that long traders are gaining an edge over short traders, hinting at a potential upcoming rally for AAVE.
Tracking Open Interest Trends
An in-depth review using Coinglass uncovered a consistent rise in Aave’s Open Interest, particularly during September.
As per the latest data, with AAVE priced at $149.26, the Open Interest reached $204.58 million, showcasing positive signs for a looming price upswing.
Robust Growth in Aave’s GHO
GHO, Aave’s native decentralized stablecoin, witnessed substantial growth with its supply reaching 135 million tokens and a market cap of $135 million at the time of publication.
The number of holders hit a record high of 2.4K users, with approximately 76% of GHO’s supply, about 103 million tokens, staked by 1.59K stakers.
GHO’s steady peg against the USD, with no notable price divergences, underscores its strong stability.
Furthermore, Aave’s founder hinted at expanding GHO’s outreach to other blockchains. While Aave V3 currently operates on various networks like Ethereum [ETH], Arbitrum [ARB], Base, Avalanche [AVAX], Polygon [MATIC], and Optimism [OP], GHO is solely deployed on ETH and ARB, leaving room for potential expansion across additional networks.
Stani Kulechov expressed, “This leaves significant room for GHO to expand across additional networks.”
This prospective extension could fuel growth in both Aave and GHO, reinforcing the possibility of higher valuations.
Overall, Aave’s price trajectory appears optimistic. With escalating Open Interest, favorable technical signals, and an expanding adoption of the GHO stablecoin, it seems poised for a further ascent.
If market conditions remain conducive, AAVE could witness substantial growth in the upcoming months.