The surge in AAVE's price and increasing interest from whales indicates the potential for greater upward momentum.
On-chain metrics revealed that 61.72% of AAVE traders on Binance were taking long positions.
With an upward price movement, Aave [AAVE] appears to be attracting significant interest from whales and institutions. On May 2, AAVE exited a brief consolidation period, paving the way for a bullish surge.
Significant increase in whale participation - are we witnessing a sustained upward trend?
The recent rise in AAVE prices appears to have attracted whales and investors, according to IntoTheBlock, a firm specializing in cryptocurrency analytics.
The large transaction volume of AAVE increased by 8% over the past 24 hours, indicating growing interest and confidence in the asset.
This increase not only reflects confidence but also raises questions about whether it will contribute to a further rise in AAVE.
To assess whether retail traders and individual investors support this bullish theory, AMBCrypto looked at CoinGlass, which revealed that both retail/long-term investors and traders are betting on rising prices.
$6.88 million in AAVE outflows.
Real-time incoming and outgoing flow data showed that exchanges recorded $6.88 million in outflows of AAVE tokens over the past week.
This significant outflow indicates potential accumulation and may create buying pressure.
Moreover, this external flow of AAVE has remained consistent since April 7, making the asset bullish and indicating significant upside potential.
Real-time incoming/outgoing flows of AAVE.
Source: CoinGlass.
61.72% of AAVE traders are taking long positions.
The interest in the AAVE token is not limited to whales, investors, and retail traders.
At the time of publication, on-chain metrics revealed that 61.72% of AAVE traders on Binance were taking long positions, while 38.28% held short positions.
This indicates that optimistic investors currently dominate the asset, which may help push the token to a new all-time high.
Incoming/outgoing flows of AAVEUSDT on Binance.
Source: CoinGlass.
At the time of publication, the price of AAVE was trading near $173.75, with a price increase of 2.5% over the past 24 hours.
During the same period, the total trading volume of AAVE increased by 5.5%, indicating a slight uptick in trader and investor participation.
AAVE price movement and key levels.
According to technical analysis, AAVE appeared to be in a bullish position and seemed poised to end its long stagnation period.
The daily chart showed that the token recently exited a small consolidation zone, which formed after exiting a downward trend line.
AAVE price movement.
Source: TradingView.
After exiting the consolidation zone, AAVE has overcome all obstacles that could halt or crush its upward momentum.
Based on recent price movement and historical patterns, if the token successfully closes a daily candle above the $174 level, it may pave the way for a 14% increase towards the $200 level.
But if it can't, it may struggle to rise in the coming days.
