TLDR:
AAVE token surged past $340, reaching $355.01 with a 24-hour gain of 15.69%, showing strong momentum in market performance
Donald Trump’s World Liberty Financial increased its AAVE holdings by $4.8 million, bringing total investment to $6.61 million
Network metrics show positive growth with daily active addresses up 36.70% and new addresses increasing by 52.28% over seven days
Open Interest rose 25.10% to $414.61 million, indicating growing trader confidence and speculative interest
Technical analysis suggests potential for reaching $500, with key resistance at $380-$400 range
AAVE has shown remarkable price movement in recent days, breaking through the $340 resistance level to reach $355.01. The token recorded a 15.69% increase over 24 hours, marking one of its strongest performances in recent months.
Donald Trump’s World Liberty Financial (WLFI) has increased its position in AAVE, purchasing an additional $4.8 million worth of tokens.
Trump’s World Liberty(@worldlibertyfi) has bought 1,408 $ETH($4.7M), 177,928 $LINK($4.7M), 19.3M $TRX($4.7M), 13,261 $AAVE($4.7M) and 507K $ENA($470K) in the past 40 mins.https://t.co/tVqGcW4943 pic.twitter.com/XpC7Jvuxpx
— Lookonchain (@lookonchain) January 20, 2025
This latest investment brings WLFI’s total AAVE holdings to $6.61 million, representing a major vote of confidence from the institutional investor.
The token’s price action has been supported by technical indicators showing a clear upward trajectory. After breaking out of a descending channel pattern, AAVE has established a series of higher highs and higher lows on the daily chart, suggesting sustained bullish momentum.
Aave
AAVE Price
Network activity metrics have provided additional support for the price increase. Daily active addresses on the AAVE network have grown by 36.70% over the past week, indicating increased user engagement with the platform. Even more impressive is the 52.28% jump in new address creation, pointing to fresh user adoption.
Transaction data shows modest but steady growth, with the total transaction count reaching 4,329 in the last 24 hours, representing a 1.55% increase. While this growth is incremental, it aligns with the overall positive trend in market activity.
The derivatives market has responded strongly to AAVE’s performance, with Open Interest climbing by 25.10% to reach $414.61 million. This surge suggests that traders are increasingly taking positions in AAVE, anticipating further price appreciation.
Technical analysis reveals that AAVE has struggled with resistance around the $360-$362 level, creating several long upper wicks on the weekly chart. However, the token’s recent breakout from a descending parallel channel suggests that the previous correction phase may be complete.
The Relative Strength Index (RSI) continues to show strength, maintaining an upward trend without generating any bearish divergence. Similarly, the Moving Average Convergence/Divergence (MACD) remains in positive territory, supporting the bullish outlook.
Trading volume has remained robust throughout this period, indicating strong market participation. The combination of institutional investment, increasing network activity, and positive technical indicators has created a supportive environment for price growth.
Chart analysis suggests that AAVE could target the $490 level, identified as the 1.61 external Fibonacci retracement resistance level. However, the token must first decisively clear the $380-$400 resistance zone that has previously capped its advances.
Recent price action shows AAVE validating the channel’s resistance trend line as support, a technically constructive development that could set the stage for further gains. The wave count analysis indicates a completed A-B-C structure within the channel’s confines.
Looking at shorter timeframes, both the RSI and MACD have crossed above their respective neutral levels of 50 and 0, traditionally considered bullish signals. These technical developments align with the broader positive momentum in the market.
WLFI’s increased investment comes at a time when institutional interest in cryptocurrency continues to grow. The timing of their additional purchase suggests confidence in AAVE’s current price levels and potential for future appreciation.
Network data continues to show healthy growth in both user activity and transaction volumes. The 36.70% increase in daily active addresses over the past week represents one of the strongest periods of network growth in recent months.
The combination of these factors – institutional investment, technical breakout, increasing network activity, and rising Open Interest – has positioned AAVE for potential further gains. The immediate focus remains on whether the token can successfully break through the $380-$400 resistance zone.
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