AAVE price stalls near the key resistance level at $400, pausing its strong rally that began in April. This uptrend followed by consoldiation coincides with accumulation by large investors and spike in active addresses, hinting at another leg up.
AAVE Price Soars By 420%
AAVE has emerged as one of the best-performing DeFi tokens recently as it approached the crucial resistance at $400. It soared by 420% from its lowest level in April, pushing its valuation to over $5.6 billion and making it the 27th biggest coin.
AAVE’s recent rally accelerated after Donald Trump’s World Liberty Financial selected it as a service provider. WLFI has also become a big investor in AAVE tokens after buying 6,137 tokens valued at $2.28 million. This purchase is a big deal because WLFI is associated with Trump and his family members.
AAVE price has also jumped as the total value in its ecosystem has jumped to a record high in US dollar and ETH terms. According to DeFi Llama, AAVE has over $23.2 billion in assets, much higher than the year-to-date low of $7.53 billion. Its TVL in ETH terms has jumped to 5.8 million ETH tokens, a trend that may continue.
AAVE’s Active Addresses Spike
More data shows that the total active addresses on AAVE has continued rising. The increase happened as investors embraced Fear of Missing Out (FOMO) as the token rallied.
According to IntoTheBlock, the total addresses with balance has risen to over 166,000, higher than July’s low of 160,000.
More data from the site shows that the number of large transactions rose to 828 on December 16, the highest level since Dec. 12. This growth is a sign that investors are getting more bullish on the AAVE crypto token.
AAVE Technical Analysis: Is New ATH Next?
The AAVE token rallied for five straight weeks. It moved above several important resistance levels, including the psychological point at $300. Also, the coin rose above $152.68, its highest swing on March 11.
AAVE has found a resistance at the strong pivot reverse point of the Murrey Math Lines at $375. It has also remained above the 50-week and 25-week moving average.
Therefore, the value of AAVE coin will likely rise to the key resistance at $460, its highest swing in October 2021, and consolidate. Odds are that it will form a bullish flag or pennant pattern, a popular continuation sign. If this happens, the coin will ultimately rise to $667, its all-time high, which is about 80% above the current level.
The bullish view will be confirmed if the AAVE price rises above the resistance at $460. A drop below the major S&R level at $250 will invalidate the bullish view.
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