AAVE Set for Massive Price surge on Bullish Technical Signals
The AAVE token has seen a remarkable recovery, surging over 132% since it’s April low. A rare technical pattern suggests it could climb another 50%.
AAVE, a leader in decentralized finance (defi), has had a great week. Its network reached a new peak in total assets, now exceeding $33.5 billion. Of this, $13 billion is borrowed, while $20.45 billion is available to lend.
The platform’s growth isn’t limited to Ethereum. On chains like Base, Sonic, and Arbitrum, AAVE’s footprint is expanding. As an example, Sonic’s total market size hit $383 million, while Base reached $882 million this week.
- AAVE’s GHO stablecoin market cap reached a record $255 million.
- Futures open interest spiked to $550 million, hinting at strong demand.
With a positive funding rate since May 6th, it seems investors expect AAVE’s future price to rise.Exchanges hold fewer AAVE tokens, decreasing from 2.72 million to 2.16 million. This scarcity may boost prices.
Technical analysis is also bullish. the AAVE price recently burst through a falling wedge, a pattern indicating a potential upward shift. It’s now above the 50% Fibonacci Retracement level, with a strengthening Average Directional Index (ADX) at 40.
The golden cross formation, where the 50-day and 200-day moving averages intersect, further supports the positive trend. Look out for the $400 mark, AAVE’s November high, as the next target.
