- AAVE’s price trends green as bullish sentiment escalates.
- On-chain and derivatives metrics point to continued buyer strength amid rising exchange activity.
Aave [AAVE] has emerged as one of the top-performing altcoins recently by registering a notable 7.34% surge over the last 24 hours, at press time.
The daily chart shows a strong upward trend for AAVE, with the $300 psychological level now in sight. This latest surge aligns with broader market optimism, as several major altcoins also post gains.
But is AAVE’s rally simply riding Bitcoin’s [BTC] recent recovery, or is it being driven by its momentum?
Let’s dig in.
Buyers dominate as exchange inflows rise
Notably, AAVE recorded the second-highest inflow into centralized exchanges in the same period, which is a familiar sign of increased trading activity or potential profit-taking.
Source: CryptoQuant
However, the aftereffects of the influx into exchanges deviate from normality; instead of triggering sell pressure, CryptoQuant’s Futures market data shows that buyers are still in control.
Long positions remain in dominance, and Funding Rates are holding steady, reinforcing a bullish bias.
Source: CryptoQuant
The recent surge in exchange inflows alongside bullish derivatives data might seem conflicting at first glance, but together, they often signal early-stage positioning for momentum-driven trades rather than exit activity.
Both investors and traders appear to be gearing up for further upside, with the $300 level acting as a psychological magnet and key resistance.
Technical setup points to a potential AAVE breakout
From a technical standpoint, AAVE’s daily chart looks increasingly bullish. The token has broken through previous short-term resistance and is now pushing toward new highs.
While a brief correction may occur, AAVE remains in an uptrend after clearing a key supply zone that had held since the 3rd of February.
Importantly, rising volume alongside price action confirms the strength of the move.
If AAVE can maintain this volume profile and buyers continue to absorb sell pressure, a climb toward $300, and possibly beyond, remains well within reach.
Source: TradingView
Market sentiments lean bullish
While AAVE’s current outlook appears bullish, traders should remain cautious amid ongoing market volatility. A sharp rise in exchange inflows without a matching uptick in long interest could signal looming sell pressure.
In addition, macroeconomic shocks or Bitcoin-led market pullbacks could quickly erode AAVE’s recent momentum.
Still, at the time of writing, AAVE was holding firm with strong backing from buyers.
If this trend continues and technical support remains solid, the $300 level could soon flip from resistance to support.
Source: https://ambcrypto.com/can-aave-bulls-push-prices-past-300-if-so-what-next/