AAVE surges 8.98% despite recent decline, bullish signals point to potential rally
1min read AAVE, a prominent cryptocurrency, has recently shown strong buy signals, indicating a potential upward price movement. The td Sequential indicator on its weekly timeframe has hinted at a possible breakout, suggesting that despite a recent 8.98% decline, aave could be poised for a rally. The cryptocurrency is currently trading within a descending wedge channel, a pattern that often signals a breakout or reversal. As AAVE approaches the upper boundary of this wedge, a breakout could be imminent.
Key resistance levels to monitor are $225 and $240. If AAVE successfully breaks through these levels, a potential target of $279 could be achieved. However, failure to surpass these resistance zones might lead to further consolidation. The next moves for AAVE will depend on its ability to overcome these critical levels.
Declining exchange reserves, which have fallen by 10.22%, indicate that investors are moving their assets off exchanges and into long-term storage. This shift suggests an accumulation phase, where investors expect a future price hike. As fewer coins are available on exchanges, this could lead to price scarcity, further driving up the value of AAVE.
AAVE has also seen a significant surge in address activity, with new addresses rising by 41.80% and active addresses climbing by 32.93% over the past week. This increased on-chain activity reveals growing interest from investors, potentially setting the stage for a price rally. Historically, hikes in active addresses have often correlated with upward price movements, as seen when AAVE hit $360 in early 2024.
Justin Sun's recent whale activity has added more bullish sentiment to AAVE's outlook. Sun acquired 2,500 AAVE, worth approximately $535,000, in his first major transaction in months. Known for his market influence, Sun's purchases often attract attention and can drive further buying pressure. This, combined with other bullish signals, could trigger a breakout for AAVE. However, the cryptocurrency will still need to overcome key resistance levels for sustained growth.
In summary, AAVE appears to be on the verge of a breakout, thanks to buy signals, strong whale activity, and a hike in address stats. Overcoming key resistance levels at $225 and $24 