cryptonewsz.com
On January 31st, Friday, the crypto market witnessed a hindered recovery as Bitcoin price struggled to surpass All-time high resistance at $108,000. While the overhead supply restrained major altcoins from key breakouts, the $AAVE price shows potential for a sustained rally amid growing whale interest.
According to Coingecko data, the $AAVE coin holds a market cap of $5.06 Billion, while the 24-hour trading volume is at $830 million.
Key Highlights:
- A cup and handle pattern drives the current recovery trendline $AAVE price
- The ongoing rally could witness overhead supply at $343 365, followed by $400.
- On-chain data highlights a surge in whale activity, reinforcing $AAVE’$ potential for long-term growth.
$AAVE Dominates DeFi as Whale Activity Rises
The decentralized finance (DeFi) sector is witnessing growing institutional interest, with $AAVE emerging as a dominant force among lending protocols. According to onchain analysts intotheblock, the $AAVE network is experiencing a surge in whale activity and bolstering its market share and position among top digital assets.
Historically, the large transaction activity has coincided with major market movements, indicating $AAVE’s potential to prolong its uptrend.
However, the anticipated recovery in $AAVE price could face major resistance at $343 and $365 horizontal levels, as they are baked by a supply of 1.3 Million and 971.68k $AAVE tokens.
$AAVE Price Impending Breakout From Cup and Handle Pattern
In a three-day rally, the $AAVE price went from $282 to $334, accounting for a growth of 18.7%. With sustained buying, the altcoin could rise another 18% to challenge the multi-year resistance at $396.
The weekly chart analysis shows that this aforementioned resistance is the past of a traditional reversal pattern called cup and handle. The chart setup consists of a long U-shaped recovery indicating the accumulation trend, followed by a temporary pullback to regain exhausted bullish momentum.
A potential breakout with a weekly closing above $396 will intensify the buying pressure and set an $AAVE target of $752.