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Over the past week, we have seen strong Aave performance, with its price gaining 2.20%. This growth rate outpaced the growth of the other cryptocurrencies in the Polygon ecosystem, which stagnated through the same period.
If it breaks out of its current bullish pennant pattern, World of Charts suggests that it would not be a stretch to see Aave well past $200 in the coming days.
Analyst Eyes Bullish Breakout in Aave
Analyst World of Charts has identified a bullish pennant pattern forming in Aave’s price action, signaling a breakout. This is a very common setup, which a lot of traders consider a buildup to a substantial price movement. Speculations hint the crypto can reach $200 in the near future.
This analysis has further credibility due to a similar past scenario that saw Aave rally by 45% as it broke out of a similar pattern. World of Charts believes that if the breakout comes to full fruition, it could hit $220.
Aave’s ongoing consolidation within the pennant now indicates consistent buying pressure, meaning traders and long-term holders are back for the ride. The move above $200 would be a psychological trigger to attract further interest from market participants and gin up volume.
The breakout momentum could therefore result in further activity, which in turn would reinforce the breakout trend and draw AAVE closer to the $220 target.
Data from IntoTheBlock Shows Growing Interest
IntoTheBlock data shows that addresses’ activity is up, which suggests an increase in user engagement. The number of new addresses rose 40.63% in the last week, indicating a consistent wave of new users.
17.97 percent more active addresses were seen, implying more interaction within the Aave network. At the same time, zero-balance addresses increased by 32.34%, meaning that not all new users are holding or being active on the token.
Technical Indicators Signal Bullish Momentum
At this time the token is trading above the 50-day EMA, which is currently at $151, providing momentary support. Also, the 100-day EMA comes in at $133 and offers depth support in case the price goes down.
Aave’s RSI 14 days is at 50.70, implying a neutral position, neither overbought nor oversold. On the other hand, the Money Flow Index (MFI) at 60.67 indicates moderate buying pressure but still hasn’t moved into overbought territory.
Aave may continue up its upward trajectory if buying momentum increases.
Aave v3 Sees Rising USDC Deposit Rates on Ethereum
Since mid-September, deposits of USDC on the Aave v3 platform on Ethereum have been beating deposits on Arbitrum and Optimism.
Despite having over $1.56 billion in deposits, it has had a deposit rate climb steadily over the last 45 days. It’s no secret that this trend has been aided by the 0.5 billion cbBTC collateral that Aave has added to Ethereum.
The collateral support has made a more favorable lending environment, while it has been able to stay competitive on yields. This means that Aave can attract users in the DeFi space, who are interested in stable returns.