AAVE’s price is rallying, but is it time to bet on it
AAVE’s price seemed to be forming a base around a stable support level, at press time, hinting that an uptrend is likely for the altcoin. In fact, the day opened extremely bullish for the crypto as AAVE founder and CEO Stani Kulechov tweeted an interested tweet.
Kulechov claimed that he will ‘joining’ Twitter as interim CEO.
BREAKING: Joining Twitter as interim CEO
— stani.eth (,) (@StaniKulechov) April 26, 2022
Investors have had their eyes set on Twitter over the past few days due to Tesla CEO Elon Musk’s bid to buy Twitter at $44 billion. The board agreed to Musk’s offer, causing the market to react wildly.
While unconfirmed, Kulechov’s tweet caused AAVE’s price to spike aggressively by nearly 10%. The on-chain volume has also seen a considerable uptick. Regardless of the weight behind the tweet or if it turns out to be a joke, AAVE buyers seem to be flocking and could trigger a minor upswing.
AAVE’s price and its blockades
Although AAVE’s price has returned gains of 6.6% today, there is a chance this hype around the coin could trigger a further move to the north. Moreover, the altcoin is bouncing off the $159.66 support level, adding credence to the upswing.
Therefore, a bounce off the said foothold is likely to trigger a 20% upswing before retesting the lower limit of the breaker, extending from $203.40 to $227.80. This technical formation is formed after two main conditions are met –
- A market structure break or a higher high
- After an MSB, the price needs to flip the demand zone formed between these aforementioned peaks into a resistance barrier
So far, AAVE’s price has done exactly that, therefore, any rally will be capped between the breaker’s limit, ranging from $203.40 to $227.80. Interested investors can open a long position now and book profits at $203.40 to capitalize on the 20% ascent. The stop losses can be kept just at the 25 April swing low of $153.52.
Supporting this move for AAVE’s price is the 30-day Market Value to Realized Value (MVRV) model. This indicator is used to gauge the sentiment of holders by tracking the average profit/loss of investors who purchased AAVE tokens over the past month.
Generally, a negative value indicates that these holders are underwater and a positive value indicates that holders are in profit. Hence, the probability of a sell-off is high in the latter condition.
Santiment’s backtests reveal that a value between -10% to -15% is the best place for long-term holders to accumulate and is appropriately termed an “opportunity zone.”
At press time, the 30-day MVRV was hovering around a local bottom at roughly -12%. This is a perfect accumulation zone for long-term holders and falls in line with the technical perspective’s bullish forecasts.