Looking at the current market trends, it seems like Aave [AAVE] is positioned to outshine many other digital assets, especially evident from the AAVE/BTC chart analysis.
The AAVE/USDT pair has been on a consistent uptrend, forming higher peaks and higher troughs. Recently, the weekly closing candle broke above the long-standing consolidation range of over 800 days, indicating a bullish sentiment.
Should there be a pullback in AAVE’s price on the daily chart, the crucial support level to watch out for is around $108.
As long as Aave maintains its price above this level, the resistance zones could potentially act as future price targets.
If AAVE manages to sustain its value above $150, there is a chance it could reach the $200 milestone before the current cycle concludes.
However, it is likely that Aave might retrace back to the $108 level before attempting to surge towards the $200 target.
Positive Funding Rates
Recent data from the Hyblock Capital tool shows that funding rates have turned positive, indicating a growing bullish sentiment among traders regarding Aave’s price potential.
Positive funding rates typically suggest an increasing demand for long positions, fueling upward momentum as the market anticipates a rise in prices.
Combined with AAVE/USDT’s price action, this hints towards a potential upward trajectory for Aave.
However, if the cryptocurrency experiences a significant downward movement, it might be prudent to remain cautious or consider reducing exposure.
Encouraging Market Performance
The current market data further bolsters the optimistic outlook. Presently, over 55% of Aave holders are in profit at the prevailing price levels, indicating a positive sentiment and less likelihood of mass sell-offs.
Moreover, around 80% of Aave’s total supply is held by major holders, reinforcing expectations of a bullish trend continuation.
A significant portion, nearly 77%, of Aave holders have maintained their positions for over a year, reflecting long-term bullish sentiment.
Furthermore, the volume of large transactions exceeding $100K has surpassed $411 million, and the Telegram community has witnessed a growth of 1.73%.
Net exchange inflows have amounted to $14.94 million in the last week, providing additional support for a potential price surge.
Increasing Monthly Revenue
In terms of revenue, Aave has surpassed its previous cycle’s monthly revenue peak. Currently, Aave is generating $1 million in weekly revenue while offering $327K in AAVE incentives.
Remarkably, Aave has outpaced its previous revenue records, reaching $7.3 million in July 2024, marking a 9% increase from October 2021.
Over the past two years, the protocol has been gaining market share, showcasing strong product-market fit (PMF).
Moreover, a recent proposal in July 2024, suggesting the implementation of a fee-sharing mechanism to redistribute excess revenue to token holders, has further reinforced Aave’s bullish price performance this year.