AAVE Surges 7.34% as Buyers Drive Bullish Momentum

AAVE, a prominent altcoin, has recently shown significant bullish momentum, with its price surging by 7.34% over the last 24 hours. This upward trend aligns with broader market optimism, as several major altcoins also posted gains. The daily chart indicates a strong upward trajectory for AAVE, with the $300 psychological level now within reach. This rally raises the question of whether AAVE's momentum is driven by its own fundamentals or if it is merely riding on the coattails of Bitcoin's recent recovery.

On-chain and derivatives metrics suggest continued buyer strength amidst rising exchange activity. Notably, AAVE recorded the second-highest inflow into centralized exchanges, a sign of increased trading activity or potential profit-taking. However, unlike typical scenarios where such inflows trigger sell pressure, CryptoQuant’s Futures market data shows that buyers remain in control. Long positions dominate, and Funding Rates are holding steady, reinforcing a bullish bias. This indicates that both investors and traders are positioning for further upside, with the $300 level acting as a key resistance.

From a technical standpoint, AAVE’s daily chart looks increasingly bullish. The token has broken through previous short-term resistance and is pushing toward new highs. While a brief correction may occur, AAVE remains in an uptrend after clearing a key supply zone that had held since the 3rd of February. Rising volume alongside price action confirms the strength of the move. If AAVE can maintain this volume profile and buyers continue to absorb sell pressure, a climb toward $300, and possibly beyond, remains well within reach.

Market sentiments lean bullish, but traders should remain cautious amid ongoing market volatility. A sharp rise in exchange inflows without a matching uptick in long interest could signal looming sell pressure. Additionally, macroeconomic shocks or Bitcoin-led market pullbacks could quickly erode AAVE’s recent momentum. However, at the time of writing, AAVE was holding firm with strong backing from buyers. If this trend continues and technical support remains solid, the $300 level could soon flip from resistance to support.