The AAVE price has experienced a significant rally this week, surging nearly 30% from $275 to $355 on the daily chart. This impressive move can be attributed to growing investor confidence in AAVE crypto, fueled by strategic collaborations with major projects, macroeconomic tailwinds, and strong on-chain fundamentals. As momentum continues to strengthen, traders and investors are eyeing the December 2024 high of $400 as the next major hurdle in the short term.
One of the key catalysts behind the recent price spike is the integration of Aave with Aptos and Chainlink. This partnership has expanded Aave’s ecosystem and accelerated mainstream DeFi adoption. The integration with Chainlink, in particular, is seen as a significant step towards scaling secure and transparent finance across multiple networks, driving positive sentiment around the project.
In addition to technical progress and integrations, macroeconomic conditions have also provided support for AAVE price. Federal Reserve Chair Jerome Powell’s remarks signaling a potential interest rate cut in September have sparked optimism in financial markets. A softer monetary policy stance is generally favorable for risk assets like cryptocurrencies, giving additional momentum to the AAVE price.
From a technical perspective, the AAVE price USD has broken through a major supply zone, with the next major resistance level at $400. If this level is surpassed, upside targets at $446, $538, and $663 are on investors’ radars. The weekly chart indicates a rally supported by a two-year-old ascending triangle structure, suggesting long-term bullish demand that could lead to an extended breakout.
Analyst Javon Marks is optimistic about AAVE, forecasting a potential price increase of up to 72% from its current level, with a target of surpassing $600. Rising on-chain activity, reflected in the positive 30-day MVRV and Aave’s record-high TVL of $40 billion, further supports the bullish case for AAVE.
In conclusion, AAVE’s recent price surge is driven by a combination of strategic collaborations, macroeconomic tailwinds, and strong on-chain fundamentals. With key technical levels being tested and bullish sentiment prevailing, AAVE has the potential for further upside in the near term. Investors and traders are closely watching the price action to see if AAVE can break through key resistance levels and continue its upward trajectory.