AAVE Surges 2.5% as Whales Accumulate, Bullish Sentiment Grows
1min read AAVE, the native token of the decentralized lending platform aave, has been garnering significant attention from both whales and retail investors. On May 2nd, AAVE broke out of a brief consolidation phase, signaling a potential upside rally. This breakout has been accompanied by a surge in large transaction volumes, which increased by 8% over the past 24 hours. This surge indicates growing interest and confidence in the asset, raising the question of whether it could fuel a further rally for AAVE.
To gauge the sentiment among traders and retail investors, data from CoinGlass revealed that both groups appeared to be betting bullishly on AAVE. Additionally, spot inflow/outflow data showed that exchanges have recorded $6.88 million worth of AAVE tokens flowing out over the past seven days. This substantial outflow suggests potential accumulation and could create buying pressure, further hinting at significant upside potential for the asset.
On-chain metrics further support this bullish sentiment, with 61.72% of AAVE traders on Binance taking long positions, while 38.28% were holding short positions. This dominance of bulls could help push the token to new highs. At the time of reporting, AAVE was trading near $173.75, recording a price surge of 2.5% over the past 24 hours. Its overall trading volume also jumped by 5.5%, indicating a modest increase in trader and investor participation.
Ask Aime: "Can AAVE's breakout signal a new bull market?"
Technical analysis by AMBCrypto suggests that AAVE appears bullish and poised to end its prolonged pause. The daily chart revealed that the token had recently broken out of a small consolidation zone, which formed after it broke out of the descending trendline. Following this breakout, AAVE has cleared all hurdles that could potentially pause or break its upside momentum. Based on recent price action and historical patterns, if AAVE successfully closes a daily candle above the $174 mark, it could pave the way for a 14% upside move toward the $200 level. However, if it fails to do so, it may be challenging for the asset to rally in the coming days.
