Can AAVE Crypto Price Double From Its CMP In Upcoming Days?

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  • The annual inflation rate of the crypto is 2.45% which is pretty worrisome.
  • AAVE is displaying a buildup of momentum.

The Total Value Locked (TVL) for the token has risen to $11.904 Billiion over the last few days. Against this, the market cap of the token is just $1.303 Billion which shows strength in the crypto project. This also represents that investors are very confident about the future growth of the crypto.

AAVE

Price Overview Chart of AAVE | Source: CoinMarketCap

AAVE has 18.71% of its market cap staked in the market and has borrowed $7.512 Billion. Also, the treasury of the token is worth $55.27 Million and has raised a total of $48.7 Million.

The token’s top 10 holders have 55.20% of the supply. The largest holder has 2.735 Million AAVE which is 17.09% alone. Also, the large holders’ concentration in the token is high resulting in 81%.

The market cap of the token rose 6.2% over the last 24 hours, is the 60th largest cryptocurrency. The liquidity of the crypto is also medium with a volume/market cap ratio of 7.20%.

The price volatility of AAVE is 6.38% and the sentiment of the token is bearish as per Coincodex. The fear and greed index of the token further is at 28 which shows fear among the investors for the token.

AAVE Token Derivatives Analysis

Higher long liquidation was recorded in the last 24 hours. This shows the sellers’ dominance over the price in the short term.

AAVE

AAVE Token Derivatives Volume Chart | Source: Coinglass

The value of the derivatives traded volume for the token has advanced by 19% in the last 24 hours following which the open interest has also advanced by 13%. This further has resulted in a traded value of $99.51 Million in derivatives.

The volume chart further demonstrates dormancy when compared to the larger timeframe. This token price might catch attention if it breaks above the pattern.

AAVE Token Technical Analysis

A prior descending triangle pattern breakout by AAVE gave it a 70% surge in its trading price. Recently, a similar pattern has emerged on the daily chart, with the price finding support at a horizontal demand zone and facing resistance from a dynamic trendline.

AAVE

AAVE Token Daily Price Chart | Source: Tradingview

The recent price behavior has resulted in a new descending triangle pattern. Over the last five days, AAVE price rose consistently. At press time, it was trading at a potential breakout level. 

If the price continues to rise, it could break out, potentially attracting more buyers and investors. This increased interest could drive the price to higher levels in the near future.

AAVE/USD Chart by TradingView

The EMAs on the daily chart of AAVE are exhibiting a death cross. Following this, the price declined below the 50-day and the 200-day EMAs. The token is trying to reverse from the lower levels as it broke above the 20-day EMA. 

Supporting this potential bullish reversal, the MACD metrics are advancing from lower levels and recently formed a golden cross. The RSI climbed the 50-level and closed above it, reflecting a rise in positive momentum for AAVE

Summary

AAVE shows potential for growth with strong TVL and increasing derivatives activity, despite a bearish market and high inflation.

Technical analysis indicates a possible breakout, but dominance by large holders and high seller activity creates uncertainty. Investors should be cautious, considering mixed signals and market volatility.

AAVE might take support at the lower levels of $52.00 and $70.00 followed by the resistances of $115.0 and $150.0.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.

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