AAVE, the native cryptocurrency of leading protocol Aave, showcased strong resilience to market volatility on Monday during Donald Trump’s inauguration. With an intraday gain of 9%, the coin price is nearing a breakout of the bull flag pattern amid a notable derivative market
According to Coingecko data, the AAVE coin holds a market cap of $5.5 Billion, while the 24-hour trading volume is at $1.5 Billion.
Key Highlights:
- The flag pattern formation drives the current correction trend in AAVE.
- The coin price is 5% from a bullish breakout of 5-week resistance.
- The ongoing recovery could have renewed selling pressure at $400 and $530 resistance.
AAVE Derivatives Data Signals Bullish Momentum
According to Coinglass data, the AAVE OI-weighted funding rate witnessed a sudden spike to 0.031% after five weeks of stagnation. While the coin price remains in a correction trend, the renewed activity in the derivative data indicates increasing investors’ interest. A positive funding rate suggests that long traders (bulls) are paying to hold their positions in anticipation of potential recovery.
Adding to the bullish outlook, AAVE futures open interest has recorded a significant positive turnaround over the past two weeks, surging from $295.5 million to $377.5 million—an increase of approximately 27.7%. Open interest represents the total value of outstanding contracts in the futures market and serves as a measure of market activity and interest.
The rise in OI suggests an influx of new capital and increased trader participation, further reinforcing a bullish sentiment for AAVE price.
AAVE Price Impending Breakout From Flag Pattern
Since mid-December 2024, the AAVE price has been resonating with two downsloping trendlines amid the formation of a flag pattern. Theoretically, the pattern displays the dominant trend with an ascending trendline ‘Pole’ and a temporary pullback ‘Flag’ to recuperate the prevailing momentum.
With today’s price surge, the AAVE coin traded at $333, nearly 5% short from a bullish breakout. If buyers flip the overhead trendline into potential support the accelerated uptrend could chase a high of $470, followed by $530.
On the contrary, if sellers continue to defend the downsloping trendline, the altcoin could prolong a correction phase.
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Source: https://www.cryptonewsz.com/aave-price-500-impending-flag-breakout/