- On-chain metrics revealed that 61.72% of AAVE traders on Binance were taking long positions.
- AAVE could soar by 14% and could reach the $200 mark if it closes a daily candle above the $174 mark.
With bullish price action, Aave [AAVE] appears to be attracting notable attention from whales and institutions. On the 2nd of May, AAVE broke out of its brief consolidation, paving the way for an upside rally.
Whales’ participation soars — Bull run ahead?
It seems that the recent breakout has attracted whales and investors, as reported by the on-chain analytics firm IntoTheBlock.
AAVE’s large transaction volume surged by 8% over the past 24 hours, indicating growing interest and confidence in the asset.
This surge not only reflects confidence but also raises the question of whether it could help AAVE rally further.
To assess whether traders and retail investors are supporting this bullish thesis, AMBCrypto took a look at CoinGlass, which revealed that both retail/long-term holders and traders appeared to be betting bullishly.
$6.88 million worth of AAVE outflows
Data from spot inflow/outflow revealed that exchanges have recorded $6.88 million worth of AAVE tokens flowing out over the past seven days.
This substantial outflow indicates potential accumulation and could create buying pressure.
Furthermore, this outflow of AAVE has been consistent since the 7th of April, making the asset bullish and hinting at significant upside potential.
Source: CoinGlass
61.72% of AAVE traders go long
Not only whales, investors, and retailers are showing interest in the AAVE token as well.
At press time, on-chain metrics revealed that 61.72% of AAVE traders on Binance were taking long positions, while 38.28% were holding short positions.
This indicated that bulls were currently dominating the asset, which could help push the token to a new high.
Source: CoinGlass
At press time, AAVE was trading near $173.75 and recorded a price surge of 2.5% over the past 24 hours.
During the same period, its overall trading volume jumped by 5.5%, indicating a modest increase in trader and investor participation.
AAVE price action and key levels
According to AMBCrypto’s technical analysis, AAVE appeared bullish and looked poised to end its prolonged pause.
The daily chart revealed that the token had recently broken out of a small consolidation zone, which formed after it broke out of the descending trendline.
Source: TradingView
Following the breakout from consolidation, AAVE has cleared all hurdles that could potentially pause or break its upside momentum.
Based on recent price action and historical patterns, if the asset successfully closes a daily candle above the $174 mark, it could pave the way for a 14% upside move toward the $200 level.
But if it fails to do so, it may be challenging for the asset to rally in the coming days.