Why 68% of top traders are bullish on Aave right now

• AAVE defies the market trend with a 13% rally, as open interest soars.
• Currently, 68.50% of top traders on Binance hold long positions, while 31.50% hold short positions.

Amid ongoing market uncertainty, Aave [AAVE] is outperforming market trends, attracting rising interest from the crypto community. 

Aave defies market trend

As of press time, the broader cryptocurrency market is struggling, including major assets like Bitcoin [BTC], Ethereum [ETH], and Solana [SOL]. Meanwhile, AAVE is leading the market with a 15% upward momentum.

This bullish momentum is driven by heightened trader interest worldwide, as reported by the on-chain analytics firm Coinglass.

According to the data, AAVE’s futures open interest has surged by 15% in the past 24 hours, highlighting how traders are capitalizing on the current market sentiment and building new positions.

Source: Coinglass

68% of traders go long 

In addition to on-chain metrics, Binance’s AAVE/USDT long/short ratio currently stands at 2.10, indicating strong bullish market sentiment among traders.

On-chain data further reveals that 68.50% of top traders on Binance hold long positions, while 31.50% hold short positions.

However, this surge in participation in AAVE follows a successful retest of a crucial breakout level, a move the altcoin had not accomplished until now after the breakout. In short, AAVE has formed a bullish price action pattern.

AAVE technical analysis and key levels 

According to AMBCrypto’s technical analysis, AAVE has formed a bullish engulfing candlestick pattern at the crucial support level of $290 but currently appears to be struggling near the resistance level of $337.

Source: TradingView

Based on recent price action and historical momentum, if the altcoin closes a daily candle above $340, there is a strong possibility it could soar by 25% to reach the $415 level in the near future.

In addition to its bullish outlook, AAVE’s recent price dip is viewed as a price correction, which now shows signs of a potential rebound.

Read Aave’s [AAVE] Price Prediction 2024-25

On the positive side, AAVE’s Relative Strength Index (RSI) currently stands at 57, close to the overbought region, indicating that the altcoin has sufficient room to gain further upward momentum.

At press time, AAVE was trading near $330 and has experienced a price surge of over 13% in the past 24 hours. During this period, its trading volume has increased by 15%, reflecting heightened participation from traders and investors amid a bullish outlook.