- AAVE flashed signs of a potential breakout as the TD Sequential signaled a buy
- Whale activity from Justin Sun and rising address stats could drive AAVE’s price higher
Aave [AAVE], at the time of writing, seemed to be flashing strong buy signals on the charts. In fact, the TD Sequential indicator on its weekly timeframe hinted at a potential upward move. At press time, AAVE was priced at $207.82, following an 8.98% decline in the last 24 hours.
Now, while the latest price dip might seem like a setback, it could present a buying opportunity ahead of a potential rally. However, with critical resistance levels ahead, it remains to be seen whether AAVE will successfully break through or face rejection.
Can a descending wedge lead to an AAVE breakout?
AAVE has been trading within a descending wedge channel, which often signals a breakout or reversal. At press time, the cryptocurrency seemed to be nearing the upper boundary of this wedge – A sign that a breakout could be imminent.
The key resistance levels to monitor are $225 and $240, with a potential target of $279 if AAVE manages to break through these.
Therefore, its next moves depend on its ability to surpass these resistance zones. If it succeeds, a breakout rally is highly probable. On the contrary, failure to break these levels might lead to further consolidation.
Source: TradingView
Declining reserves indicate accumulation
Exchange reserves fell by 10.22% across the board. Typically, such a decline means that investors are moving their assets off exchanges and into long-term storage.
Such a shift could indicate an accumulation phase, one where investors expect a price hike in the future. As the reserves drop, fewer coins are available on exchanges, and this could lead to price scarcity.
Source: CryptoQuant
Address stats surge – Are more investors getting involved?
AAVE has seen a significant uptick in address activity lately, particularly over the past week. In fact, new addresses rose by 41.80%, while active addresses climbed by 32.93%.
This surge in on-chain activity revealed growing interest from investors, potentially setting the stage for a price rally. Historically, hikes in active addresses often correlate with upward price movements, as seen when it hit $360 in early 2024.
Source: IntoTheBlock
Will Justin Sun’s whale activity push AAVE to new heights?
Justin Sun’s latest whale activity has added more bullish sentiment to AAVE’s outlook. He acquired 2,500 AAVE ($535k) in his first major transaction in months. Known for his market influence, Sun’s purchases often attract attention and can drive further buying pressure.
This, combined with other bullish signals, could trigger a breakout. However, AAVE will still need to overcome key resistance levels for sustained growth.
At the time of writing, AAVE appeared to be on the verge of a breakout. Thanks to buy signals, strong whale activity from Justin Sun, and a hike in address stats, the cryptocurrency may be positioned for potential growth.
However, overcoming key resistance levels at $225 and $240 will be crucial. If AAVE manages to breach these levels, a price surge is likely.
