The Ethereum-based protocol token Aave is exhibiting signs that point towards an imminent bullish breakout. According to recent data from Santiment, a renowned crypto intelligence firm, there has been a notable accumulation of Aave tokens by major wallet holders. An upswing has historically followed this trend in the asset’s market value.
In an intriguing development, the largest 150 wallets in the Aave network have amassed a staggering 9.61 million tokens. This holding level hasn’t been observed since July and represents a significant concentration of Aave tokens. Such accumulation patterns have previously been a precursor to a rise in the asset’s price, as evidenced in the fluctuations between June and December 2023.
Aave currently stands in the middle tier among other alternative cryptocurrencies. As the 50th-ranked asset in terms of market capitalization, it has witnessed the most substantial holding by the top 150 wallets in the past five months. This factor, coupled with the Relative Strength Index entering what is known as a bounce zone, contributes to the bullish sentiment surrounding the asset. The RSI, a key indicator of market momentum, dropped to 40 on the 12-hour chart – a threshold where Aave prices have historically rebounded.
The analysts at Santiment have thus predicted a bullish trend for Aave, supported by key on-chain metrics like the supply of Aave on cryptocurrency exchanges, exchange netflow, and Market Value to Realized Value (MVRV) over 7 and 30-day timeframes. The supply of Aave on exchanges has remained relatively stable since November 10, which is significant. Concurrently, there have been net outflows of Aave from exchanges, marked by notable spikes on November 19, 29, and December 8. This trend suggests a decrease in selling pressure and supports the bullish thesis for Aave.
Furthermore, the MVRV metric, representing the average profit or loss of all circulating coins over a certain period, indicates that Aave token holders are experiencing unrealized losses. This situation usually discourages investors from selling, reducing selling pressure and potentially aiding in price appreciation. Historically, every time the MVRV dipped to similar levels (-4.99% on the 7-day timeframe and -5.64% on the 30-day timeframe), a bounce in Aave’s price followed within the subsequent ten days. If history is any indicator, Aave’s price is poised for a bullish breakout in the coming days.
As of the latest update, the price for Aave stands at $90.44, with a 24-hour decrease of 1.14%. The bearish pressure has been mounting on the Aave market, leading to a slight decline in price. However, despite this recent dip, Aave maintains its position as one of the top 100 cryptocurrencies by market cap. The current market capitalization for Aave stands at $1,343,604,472, solidifying its position as a significant player in the crypto market. The trading volume remains strong at $125,160,435 in the last 24 hours.
