- Aave price is well bolstered by top whale accounts that hold more than half of the AAVE total supply indicating a bullish outlook in the short term.
- Backed by a daily golden cross, AAVE price is on the cusp of a major breakout after almost completing a daily ascending triangle consolidation with a 70 percent potential upside rally.
Aave (AAVE) network, a veteran decentralized non-custodial liquidity market protocol that facilitates seamless borrowing and lending through digital assets, has grown into a mature ecosystem with more than $6.4 billion in Total Value Locked (TVL). The AAVE token has played a crucial role in protocol governance in addition to incentivizing the community through staking to secure the ecosystem.
As a result, the AAVE token has gradually been adopted by deep-pocketed crypto investors and retail traders, which has significantly bolstered the bullish sentiments. Moreover, the altcoin season is expected to materialize in the coming weeks as crypto cash flow moves from Bitcoin to the altcoin industry.
Closer Look at AAVE Bullish Scenario
According to the latest crypto market data, AAVE price has gained about 10 percent in the past 24 hours to trade around $97.74 on Thursday. The medium-capped altcoin with a fully diluted valuation of about $1.55 billion has been preparing to break out from a daily ascending triangle after a successful rebound from the bear market lows of around $51.
From the Elliott Wave principle, AAVE price still has more upside potential amid the ongoing altcoin awakening. However, the AAVE bulls must act on the resistance level around $108 to avoid further correction towards $73. Moreover, the weekly Relative Streng Index (RSI) is attempting to rally above 70 for the first time since March 2021.
According to the weekly auto Fib Extension, AAVE price must first act on the resistance level around $116 in a bid to secure a rally towards $170, which will represent a 70 percent spike from the current levels. The likelihood of AAVE price continuing in a bullish trend from current levels is very high, after a multi-week consolidation that began last year following the Terra Luna collapse.
Furthermore, Ethereum has led the altcoin market in a bullish breakout, which often trickles down to all other altcoins amid heightened speculations coupled with FOMO trades.
Why Bet on Aave?
The Aave protocol has attracted notable web3 players due to its viable business model that includes decentralized lending and borrowing with digital assets. As a multichain protocol that taps into Ethereum’s smart contracts, the Aave protocol has been tested as a secure and scalable web3 platform with over $3.32 billion already borrowed through the protocol.
According to a recent X post by market intelligence platform Santiment, the top 150 whales on the network hold about 9.61 million AAVE, which is more than half of the total supply.
📊 #Aave has some #bullish divergences forming as it has stayed around the middle of the pack among other #altcoins. The 50th ranked market cap asset has the most coins held by the top 150 wallets in 5 months, and RSI has entered a bounce zone. https://t.co/NmRrlQRrpx pic.twitter.com/M65PEli3Uu
— Santiment (@santimentfeed) December 12, 2023
Meanwhile, the Aave protocol provides AAVE holders with a passive income through a 4.76 percent APR, whereby more than $406 million worth of AAVE has already been staked.
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