- AAVE crypto experienced a bullish crossover, indicating that prices might rally higher in the near term.
- Open Interest has risen by 43.31%, showing a strong retail buying presence.
Aave’s [AAVE] price surged by 7.22% in the last 24 hours while its trading volume nearly doubled to $220 million, a 93.26% increase, signaling high buyer and seller interaction.
This surge in market activity can be linked to AAVE reaching a new all-time high in weekly DeFi borrowing volume in the past few days, as announced by founder Stani Kulechov.
The recent rally propelled AAVE to trade at $104.73, and the token may continue its upward trajectory in the near term as well. Here’s why AMBCrypto considers further rises imminent.
Is a $121 price target feasible for AAVE crypto?
In the coming days, AAVE is set for a notable price increase, guided by the moving average convergence and divergence (MACD).
The MACD, which identifies trends through the relationship between two moving averages, signals bullish sentiment when the MACD line (blue) crosses above the signal line (orange).
This scenario is currently unfolding with AAVE, as its MACD line has crossed above its signal line, suggesting that bulls are poised to push the price further.
Source: TradingView
The rally could potentially boost AAVE to the $111.86 resistance region shortly.
If the bullish momentum continues, AAVE might climb to $121.74—a target indicated by the Fibonacci retracement line and also a price level last reached in April 2024.
Source: TradingView
Should this level falter, AAVE might find support at $101.98, where significant buy orders are pending.
Retail traders place buy bets
Retail traders are increasingly bullish, placing buy bets in anticipation of a higher AAVE price, corroborated by a 43.31% increase in Open Interest to $94.24 million on Coinglass.
Source: Coinglass
This increase in Open Interest suggested that these retail traders were injecting new or additional money into the market.
More bullish signs
The Parabolic SAR and Directional Movement Index (DMI) furthered the bullish outlook for AAVE.
The Parabolic SAR, which generates a buy signal when dots appear below the price bars, was observed with AAVE at press time.
Source: TradingView
Moreover, the DMI on AAVE showed a bullish trend, as the Positive Directional Indicator (+DI) (blue line) surpassed the Negative Directional Indicator (-DI) (orange line).
Realistic or not, here’s AAVE’s market cap in BTC’s terms
This setup indicated strong upward price momentum, signaling a compelling buying opportunity.
Unless there’s a shift in these bullish indicators, AAVE is likely to reach new heights at $111 and potentially $121.
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