AAVE has demonstrated an impressive performance over the past 24 hours, showing significant price growth in double digits. This recent upward trend could potentially propel the token beyond the $400 mark, as indicated by a well-known analyst.
Therefore, an evaluation of its metrics by CryptoCrypto was conducted to determine the clarity of the path ahead.
Increasing Momentum among AAVE Bulls
Observing an 18% surge in price over the last 24 hours, AAVE has decoupled from the leading cryptocurrencies. Currently trading at $378, the token boasts a market capitalization exceeding $5.6 billion.
Renowned crypto analyst Ali Martinez shared a tweet suggesting a possibility of further growth, contingent on meeting a specific condition. Mentioning the formation of an Adam and Eve pattern on the token’s chart, a successful breakout above the $342 resistance zone could propel the token past $400 in the near future.
Martinez specified that a breakout might lead to a 19% price increase. Fortunately, the token did experience a successful breakout and is currently making strides towards the $400 threshold.
This recent price surge also positively impacted the token’s social metrics, with its weighted sentiment entering the bullish territory, indicating a growing optimism surrounding AAVE.
Additionally, the social volume witnessed an increase, underscoring the coin’s popularity in the crypto sphere.
Assessing AAVE’s Continued Growth Potential
Subsequently, CryptoCrypto delved into the token’s on-chain data to ascertain the likelihood of this bullish trend persisting. The analysis revealed a recent uptick in selling pressure.
An increase in AAVE’s supply on exchanges, coupled with a decrease outside of exchanges, often signifies investors selling off to capitalize on profits, which could trigger price corrections.
Another concerning metric was the MVRV ratio, which exhibited a slight decline following a promising upswing on December 23rd.
A similar trend was observed in Coinglass’ data, indicating a higher prevalence of short positions compared to long positions, evident from the token’s declining long/short ratio (4-hour) in the last day.
In the event of a price correction, retesting the $366 support level will be crucial for AAVE to fuel a rally towards $400 in the days ahead. However, breaching this support could potentially lead to a price regression back to $301.