- Aave has surged over the past 24 hours to hit a three-year high of $359.
- The coin’s mean dollar invested age has dropped as old coins entered circulation.
Over the past 24 hours, Aave [AAVE] has experienced a strong upward momentum, rising from $269 to a 3-year high of $359.
In fact, at the time of writing, Aave was trading at $353. This marked a 32.82% increase on daily charts.
The recent rally has left analysts talking about factors driving it. Inasmuch, Santiment has posited that the massive drop in “mean dollar invested age” is one major factor driving Aave’s uptrend.
A 3-year high
According to Santiment, Aave has surged to surpass the $300 mark for the first time in 3 years because big dormant investors are moving old coins.
Source: Santiment
With the mean dollar invested age declining, it indicates that major key stakeholders are moving their previously stagnant tokens into circulation, thus perpetuating bullish momentum for the altcoin. If whales continue circulating older coins, the rally could see strong upward momentum.
This activity of whales circulating older coins has been witnessed over the past hours with Blockchain Capital.
Source: SpotOnChain
According to SpotOnChain, this entity deposited 16,964 Aave tokens worth $5.06 million to FalconX after two years of dormancy.
This activity from dormant wallets is crucial for the rally, as it creates liquidity and keeps the network actively engaged.
Source: Lookonchain
While this entity made a deposit, new buyers are entering the market. As such, World Liberty has been on a buying spree purchasing 3357 tokens over the past day at an average price of $297.8.
With large holders starting to accumulate and dormant whales putting coins back into circulation, the rally could see steam.
However, it’s worth noting that a retrace could occur as soon as large wallets ‘put on the brakes’.
Can Aave sustain the uptrend?
Aave is currently experiencing a strong uptrend as dormant whales have revived the market.
With increased buying pressure and bullish momentum, the altcoin could see more gains on its price charts.
Read Aave’s [AAVE] Price Prediction 2024-25
If the prevailing sentiment holds, Aave will find significant resistance around $378. A move above this level could see the altcoin hit $400.
However, if large wallets stop releasing old coins, a retrace could occur. In such a case, Aave could decline to $297.
