Within the last 24 hours, Aave [AAVE] has witnessed a robust upward trend, climbing from $269 to a three-year peak of $359.
Currently, Aave is trading at $353, indicating a significant 32.82% spike according to the daily charts.
Analysts are attributing the recent upsurge to various factors, with Santiment suggesting that the noticeable decrease in the “mean dollar invested age” plays a significant role in driving Aave’s bullish movement.
Reaching a Three-Year Peak
Santiment notes that Aave’s recent leap above the $300 threshold after three years is due to substantial movements of long-dormant assets in the market.
The diminishing mean dollar invested age hints at prominent investors transferring formerly dormant tokens into circulation, thus fueling a positive trajectory for the altcoin. As whales continue to circulate older assets, the upward momentum of the rally may strengthen.
Instances of these whale activities, involving the circulation of old tokens, have been evident with Blockchain Capital’s recent actions.
Reportedly, SpotOnChain observed the deposit of 16,964 Aave tokens valued at $5.06 million by this entity into FalconX after a two-year dormancy period.
Such movements by inactive wallets are vital for the rally as they enhance liquidity and maintain a vibrant network ecosystem.
While existing holders increase their holdings, new players are also entering the market. For instance, World Liberty has been actively acquiring 3357 tokens at an average price of $297.8 over the last day.
As large investors start accumulating and dormant players reintroduce tokens into the system, the rally may continue to gather momentum.
Nonetheless, it’s essential to acknowledge that a retracement could ensue once significant wallets decide to slow down their token circulation.
Is Aave Positioned to Sustain Its Bullish Momentum?
Currently, Aave is riding a strong uptrend as dormant whales reinvigorate market activity.
With growing buying pressure and positive market sentiment, the altcoin could witness further price increases on its charts.
If the current market sentiment persists, Aave is likely to encounter substantial resistance at around $378, potentially pushing it towards the $400 mark.
However, a scenario where large wallets cease releasing old tokens could trigger a correction, leading Aave to retrace back to $297.