Aave (AAVE) price has rallied over 10% this week, trading above $260 as on-chain metrics and technical indicators signal further upside potential. Here’s why AAVE could continue its upward trajectory:
Key Drivers of AAVE’s Rally
Record-Breaking On-Chain Activity:
- Active monthly loans on Aave reached $16.37 billion in June, a historic high (Token Terminal).
- Dominates the decentralized lending sector with a 62.6% market share, outpacing competitors like Morpho and Spark.
Rising Protocol Revenue:
- Cumulative fees and revenue hit $1.37 billion** and **$223.44 million, respectively (DeFiLlama).
Bullish Derivatives Data:
- The long-to-short ratio for AAVE surged to 1.07, the highest in a month (Coinglass), reflecting growing trader confidence.
Technical Analysis: AAVE’s Path Ahead
Support and Resistance Levels
- Key Support: $219.69 (200-day EMA + 50% Fibonacci retracement).
- Current Price: $260 (testing near-term resistance).
Next Targets:
- $282.52 (daily resistance).
- $325.41 (June high) if bullish momentum sustains.
👉 Why AAVE’s lending dominance could fuel long-term growth
Indicators to Watch
- RSI: Hovers near 50 (neutral), needing upward movement to confirm bullish momentum.
- Volume: Rising trade volume supports the current uptrend.
FAQs
1. What’s driving AAVE’s price surge?
- Record loan activity, revenue growth, and bullish trader sentiment are key catalysts.
2. Can AAVE reach its June high of $325 again?
- Yes, if it breaks past $282.52 resistance and maintains bullish on-chain metrics.
3. What’s the risk if AAVE fails to hold $260?
- A drop to $219.69 support is likely, aligning with the 200-day EMA.
Conclusion
AAVE’s combination of strong fundamentals, technical rebound, and derivatives optimism suggests potential for further gains. Traders should monitor the $282.52 resistance and RSI for confirmation.
👉 Explore decentralized lending trends with AAVE
Disclaimer: This analysis is for informational purposes only. Always conduct independent research before investing.
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