Aave (AAVE) stands out as a leading decentralized finance (DeFi) platform in the current market landscape, displaying remarkable strength in recent times. Earlier this year, AAVE broke out of a consolidation phase and is currently among the top gainers, showing an increase of more than 7% over the past 24 hours.
This upward momentum also resulted in a corresponding rise in its market capitalization by the same margin. Moreover, trading volume surged by 46%, resulting in a volume-to-market cap ratio of 16.75%.
This ratio signals a promising investment opportunity, indicating that AAVE possesses ample liquidity to mitigate frequent price fluctuations. Notably, the total value locked (TVL) in Aave has been impressive, with $11 billion worth of assets secured on the platform.
Assessing AAVE’s Price Trends and Forecast
Tracking the price movement of AAVE/USDT reveals a bullish trajectory throughout the year. The altcoin has consistently been forming higher highs and higher lows since breaking out of its previous trading range.
A double bottom pattern emerged around the $140 price level, hinting at the potential for further upside. There is a likelihood that AAVE could retest the $200 milestone in the final quarter (Q4) of the year.
Currently trading above the $150 level, traders are optimistic about a close above recent highs, reinforcing the chances of reaching the $200 target amidst improving overall market conditions.
Bullish Sentiment Evident in AAVE’s Long/Short Accounts
An analysis of the long and short account metrics reveals a bullish shift in sentiment. Long accounts have surged to nearly 51%, while short accounts stand at 49% at the time of this report.
This shift indicates a shift in control from short positions to buyers, suggesting growing confidence in AAVE’s future trajectory.
As short positions lose prominence, the momentum is likely to favor long positions, supporting the thesis that AAVE is primed to surge towards the $200 mark during its next upswing.
Recovery in Buy Volume and Funding Rates
Observing the buy volume and funding rates, it is evident that both metrics are rebounding from previous lows attributed to market corrections. These metrics are approaching the 30th percentile, with a global average of around 30%.
The uptick in these metrics bolsters the case for an upward trend, potentially leading AAVE to reclaim the $200 level. The cryptocurrency’s recent performance, coupled with key indicators, suggests a favorable position for future growth.
Backed by ample liquidity, a bullish price trajectory, and positive long-short dynamics, AAVE appears well-positioned to target higher price levels in the coming periods.
Investors are advised to exercise caution, staying vigilant about market conditions and broader trends to make well-informed investment decisions.