Aave Approaches Peak Following Price Increase Due to WLD News

With Donald Trump’s crypto project, investing millions in Ethereum, Chainlink and Aave, the demand for these tokens in the crypto market has significantly increased. Notably, the price of Aave has risen by 45% this week, reaching a three-year high of $383.5 just a few hours ago.

The token’s price jumped from $260.53 to $383.50 in two to three days, resulting in the biggest crypto rally of the week. However, the price has since consolidated and is currently trading at $374.92, but bears could soon take over.

Aave is considered one of the best crypto coins to buy, partly thanks to previous price increases when it reached an all-time high (ATH) of $666.86. After a three-year consolidation, the price has now significantly recovered. In the past month, the altcoin’s price has risen by 114%, 45% of which occurred in the past week and 3% in the past 24 hours, indicating a changing trend for the token.

Interestingly, this increase came shortly after Trump’s victory in the US elections and the purchases by World Liberty Financial, which bought $12 million worth of crypto, including AAVE. However, some crypto analysts predict a major correction. A popular analyst, Ali, notes that the social volume and positive sentiments around this token are rising sharply, which could lead to a setback.

What awaits Aave?

According to Ali, the crypto market often moves against the prevailing sentiment, which could cause a correction in the Aave price rally.

Another analyst described Aave as a “sleeping beast” and noted that the token is moving according to plan, including a correction below the key supply zone before a breakout occurs.

“Sorry for those who have not accumulated $AAVE 😢 AAVE is going according to plan and will break out from the supply zone after a correction.”

The Aave price fluctuated today between $360.10 and $388.94 and is currently at $374.92. This increase has raised the market capitalization to $5.62 billion, making Aave the 28th largest cryptocurrency according to CoinMarketCap. The increased trading volume of $1.99 billion (+15.50%) indicates strong buying pressure on the token.

The RSI is still in the neutral zone, supporting the continuity of the current trends. Moreover, most technical indicators, such as moving average and MACD, indicate a buy zone. However, the current momentum indicator suggests a possible trend reversal.

An important level to watch is the resistance at $386.53. A breakthrough above this level could push the price to $444.34. However, if a setback occurs as predicted, the price could drop to $270.92.