contributor
Posted:
- Aave is up 3.79% in the past 24 hours.
- With a bullish crossover and strong buying pressure, Aave is positioned to reach $200.
Since hitting a local low of $153 days ago, Aave [AAVE] has seen a strong rebound, reaching a high of $184.
In fact, at the time of writing, Aave was trading at $181. This was 3.79% over the past day. Similarly, the altcoin has risen on the weekly and monthly charts, gaining 8.25% and 24.52% respectively.
Despite this price pump, Aave still remained about 72.89% below its ATH of $666.
Therefore, current market conditions raise questions about whether the price recovery will be sustainable or just a market correction.
What the cards of Aave say
According to AMBCrypto’s analysis, Aave is experiencing strong upside momentum amid increasing buying pressure. As such, the altcoin has made a bullish crossover on Stoch RSI.
Over the past 48 hours, the Stoch has made a move to settle at 41. This suggests that buyers dominate the market and that prices may rise in the short term.
Source: Tradingview
This bullishness is further confirmed by the Relative Strength Index (RSI).
Over the past 24 hours, the RSI, at 58, has confirmed the uptrend after reversing its MA to 54, further reinforcing our observation of strong buying pressure.
The strength of this uptrend is also confirmed by the DMI, as +DMI stood at 23 and remained above -DMI. This suggested that the upward momentum was strong while the downward trend had been exhausted.
Source: IntoTheBlock
Looking further, Aave investors are showing high optimism. This is evident from a high outflow from the stock exchanges.
According to IntoTheBlock, volume outflows have risen to a weekly high of 47.95K, reflecting investor confidence as they move their tokens from exchanges to private wallets and cold storage.
Source: Cryptoquant
This phenomenon is further evidenced by a decreasing ratio between supply and exchange. According to data from CryptoQuant, the exchange ratio has fallen to a monthly low in the past 48 hours.
Such developments suggest that investors are getting more Aave from exchanges than from deposits.
Source: IntoTheBlock
Read Aave’s [AAVE] Price forecast 2024-25
Finally, we can see that this price increase does not come from market speculation, but from strong activities in the chain.
This is evident from the fact that Aave’s active addresses have risen to a two-week high of 2.6K in recent days. This shows increased demand, adoption and participation, which is crucial for the price increase.
