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AAVE, the native token of Decentralized Finance Protocol Aave, was exhibiting massive buying pressure and riding the upward bullish move.
Despite the significant supply pressure across the crypto market, AAVE has remained resilient and decisively ascending gains beyond the $100 mark.
This week, Aave Labs, the company behind the Aave protocol, announced the launch of Aave V3.1 was live for all networks with Aave V3 deployments.
The V3.1 includes updates expected to make the DeFi protocol more secure.
Recently, the asset has made a double bottom formation around the $80 mark and delivered a significant pullback from there. Afterward, it continued to accumulate and showed a demand resurgence.
Moreover, it breached the declining trendline and exhibited a reversal. Notably, it has cleared its most crucial pivot of $115 and saw a breakout on the chart.
When writing, the AAVE price was trading at $115.61, up over 10% intraday. It noted a trading volume surge of over 98%, directing the speculative move.
AAVE Saw Bullish Reversal: Could It Reach $150 This Month?
AAVE has defied a three-month correction phase and made a fresh higher high swing above the cluster of $105. Additionally, sentiments have changed, and the bulls were eyeing to turn the recovery into a bullish trend.
Under the influence of double bottom formation, AAVE has shown a breakout and rose over 55% last month. Per this extensive surge, the short holders looked trapped and began to cover their positions.
The momentum indicator, the Relative Strength Index, highlighted the bullish stance through the formation of a higher high. That signified the sustained buying pressure and rising demand pressure.
In addition, the MACD indicator saw a bullish crossover, projected a buy signal, and suggested that the next bullish leg toward $125 was imminent.
What Do On-Chain Metrics Indicate?
The Weighted sentiment data showed a shift in the investor’s mindset, and the value reached the positive region, implying a positive stance.
On the social front, the dominance curve showed a surge, revealing increased media buzz, which was noted at 0.139%. Following the sharp price recovery, the investors started chatting about AAVE and indicated their willingness.
In a recent tweet on X, Dalin Anderson said that AAVE is ready for a breakout rally and can go higher ahead.
#AAVE looks ready for more impulse waves. $AAVE pic.twitter.com/OXD6EHdn9o
— High Altitude Investing (Dalin Anderson) (@HighAltitudeInv) August 2, 2024
Moreover, the active addresses data showed an extensive surge and soared to 1128, highlighting the confidence among the buyers to accumulate AAVE.
Futures Open Interest Data Showed an Uptick
Following the impressive price rally, the futures data showed investors were confident in making long trades and continued accumulating AAVE.
Notably, the Open Interest data spotted an increase of over 41.41% to $130.02 Million, highlighting fresh long additions in the past 24 hours.
If the AAVE price continues to sprint ahead, it may go higher and retest the upside mark of $120, followed by $125. If any profit booking took place, the immediate support was placed around $110, followed by the $102 mark.
AAVE showed signs of a bullish reversal and witnessed a solid accumulation from the bottom. Following the sharp recovery and a trendline breakout accompanied by a massive volume surge, it gave a solid conviction that it may continue to proceed ahead.