AAVE Price Update

AAVE’s price shot up by 18% in the last 24 hours.
Selling pressure on the token increased, hinting at a slight price correction.

AAVE has displayed tremendous performance in the last 24 hours with double-digit price gains. This recent uptrend might push the token further above $400, as predicted by a popular analyst.

Therefore, AMBCrypto assessed its metrics to find out whether the road ahead is clear.

AAVE Bulls Are on the Move

AAVE decoupled from top cryptos, registering an 18% price hike in just the last 24 hours. Currently, it is trading at $378 with a market capitalization of over $5.6 billion.

Ali Martinez, a popular crypto analyst, tweeted about a potential bullish trend if one condition was met. According to the tweet, an Adam and Eve pattern was forming on the token’s chart. A successful breakout above the $342 resistance zone could propel the token to cross $400 soon.

Martinez suggested that a breakout could result in a 19% price increase. Fortunately, the token achieved this breakout and is now approaching the $400 mark.

The recent price increase positively affected the token’s social metrics. Its weighted sentiment shifted into the positive zone, indicating a rise in bullish sentiment. The coin’s social volume also increased, signifying its growing popularity in the crypto market.

Odds of AAVE Sustaining the Pump

AMBrypto examined the token’s on-chain data to determine whether this bull run would continue. The analysis revealed increasing selling pressure recently.

AAVE’s supply on exchanges grew while its supply outside of exchanges dwindled. This trend amidst a bull rally indicates that investors may be cashing out for profits, often leading to price corrections.

Another bearish metric, the MVRV ratio, dropped slightly following a promising uptick on December 23rd. Furthermore, Coinglass’ data showed more short positions than long positions, with the token’s long/short ratio (4-hour) declining over the last 24 hours.

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

If a price correction occurs, it will be crucial for AAVE to test its support at $366 to restart a rally towards $400 in the coming days. However, if the token drops below this support, its price could decline to $301.