Aave bulls have experienced modest gains in the past two weeks. Traders are eyeing a potential buying opportunity if AAVE dips to the $150 level. The Total Value Locked (TVL) in Aave has been steadily increasing, indicating growing investor confidence and more capital being deposited in Aave’s smart contracts. The Aave team has allocated $50 million annually to buy back AAVE from the market, which could further boost investor confidence. As a result of this news and the recent market-wide rally, AAVE has managed to surpass the $150 short-term resistance zone.
Since reaching lows of $125 on April 9th, AAVE bulls have led a 26.2% rally in two weeks, outpacing Bitcoin’s 22% increase in the same period. However, the altcoin market typically follows Bitcoin’s trends, and AAVE itself has not shown significant strength. The OBV has not reached new local highs, indicating subdued buying pressure. For a sustained rally, investors will need to see an increase in buying volume. The RSI has shifted into bullish territory, but without signs of accumulation, this momentum shift may not hold.
The liquidation heatmap suggests that $182 and $191 are strong magnetic zones above the market price, while $173 and $149 are interesting regions closer to the price. Short-term price targets include $166, $159, and $149, with a potential climb towards $190 in the coming days. The $170 region may pose a challenge for bulls, potentially leading to a retracement to $159 or $149. This dip could present a buying opportunity for traders looking to capitalize on Aave’s potential.
In the short term, traders have reason to be bullish on Aave, but a breakout beyond $190 will require sustained demand, which may be lacking at the moment. It’s important to note that the information provided is solely the writer’s opinion and does not constitute financial, investment, or trading advice. As AAVE continues to navigate market fluctuations and investor sentiment, keeping a close eye on key price levels and indicators will be crucial for traders looking to capitalize on potential buying opportunities and capitalize on Aave’s growth potential.
