- Strong bearish momentum has brought the AAVE price close to the 20-day EMA
- Social and GitHub activity indicate strong user engagement.
- On-chain data shows increasing bullish sentiment.
Aave (AAVE) has delivered an impressive market performance this quarter. The AAVE Price has surged by 120% over the past three months. It performed better than many crypto assets with poor performance.
However, recent data indicates that the AAVE crypto has hit resistance around the $158 supply zone. It readily moved through the 20-day, 50-day, and 200-day EMA bands in August 2024. Yet, in the final month of the quarter, a solid bearish momentum brought the price close to the 20-day EMA band.
The Aave coin price has dropped nearly 12% this week from the supply zone, with an additional modest 2% intraday decline.
Will the Aave token succumb to bearish sell-offs as a profit-taking strategy or rebound and continue its upward trend? Find the answer in this AAVE price analysis.
Social & Github Monitoring Speaks Optimism for AAVE Price
AAVE has a robust presence on X (formerly Twitter), with its account being active for over 7 years and amassing 592.431K followers. Similarly, its Telegram channel is highly active, boasting 17.585K subscribers and gaining 5 new followers in just one day. These details underscore AAVE crypto’s established foothold in the crypto community.
AAVE has been active on GitHub for over 5 years and 7 months. It earned 2900 stars from the developer community. This open-source, non-custodial protocol-based crypto project boasts a security score of 90.46 and a ‘2A’ tier security class rating.
Essentially, Aave’s solid development activity and social dominance highlight significant user engagement. That could drive increased demand and potentially boost the AAVE price.
On-chain Highlights Increased Bullish Ground
At the time of writing, 58.38% of AAVE crypto holders were in profit, while 38.04% were experiencing losses. The total number of AAVE holders stood at 169,495, with the holders’ chart indicating a steady increase over time. Despite this week’s market sell-off, accumulation has continued to rise.
AAVE’s correlation with Bitcoin is relatively low at 0.08, suggesting that it operates independently of major market movements. Large holders now account for 80% of the total circulating supply, with whales holding 61.57%. On average, tokens are held for 1.2 years before being transferred or swapped.
In terms of active user geography, this week saw 2,746 active users conducting 9,171 transactions, marking a 14.32% increase from the previous week. The total value of AAVE tokens transferred in the trade was $344 million.
This indicates that the sell-off this week was relatively minor compared to AAVE crypto’s market cap of over $2.11 billion. The substantial market cap has helped the AAVE price maintain its position above the 20-day EMA, preventing further fall.
AAVE Price Prediction: Recent Fall Appears Temporary
In the first quarter of 2024, the AAVE price peaked at $153 but then succumbed to bearish pressure in the second quarter. It dropped to the $80 demand area.
However, the crypto showed a strong recovery in the third quarter. It bounced back from that critical demand zone. During this period, AAVE coin’s price surged past its yearly highs, reaching $158.43.
Despite encountering resistance at this level, it managed to stay above the 20-day EMA. That’s an indication of weak selling pressure and strong long-term bullish momentum.
Currently trading at $140.11, the AAVE coin price is anticipated to experience another pullback. This might potentially push its price beyond $158 and aim for a 45% gain, which would bring it close to the $200 mark.
According to the AAVE price prediction, it is set for a significant rally that could break through resistance levels and reach new heights. However, if bearish sentiment intensifies, the support levels to watch would be $125 and $115.
