What you need to know:
- Aave currently has $23.7 billion in active loans, demonstrating strong underwriting and liquidity.
- The weekly positive MACD confirms the overall bullish trend, despite a short-term momentum slowdown.
- The price breakout targets $200-$220, supported by bullish momentum and technical indicators.
At this moment, Aave has approx $23.7 billion in loans on its platform. This shows how popular the platform has become and how much trust the community has in it since it became the most popular decentralized finance platform.
Source: @tokenterminal
The majority of these loans, worth approximately $19.4 billion, are on the Ethereum mainnet. Ethereum’s strong smart contract system allows Aave to run its services efficiently. This underlines the importance of the Ethereum network for DeFi and its use as a stability anchor for Aave. This is due to its scalability and wide user participation in lending and borrowing activities.
Also read: AAVE price shock: 18% increase predicted in 5 days
AAVE Price Breakout Signals Bullish Shift
The crypto analyst, Whales_Crypto_Trading, revealed that AAVE is moving into a descending triangle, with lower highs pushing against a strong horizontal support level of $131-$136. After a period of consolidation, there was a strong break above the support level, negating the bearish pattern. This break was accompanied by strong momentum, restoring ownership of MA 50.
The first resistance level is around 167-170, followed by the strong resistance level between 174 and 182. A successful breakout above this level opens the way to further upside. The previous resistance level around 150-155 and MA50 now provide strong support for any correction.
Source: @WHALES_CRYPTOt
Using the size move in the descending triangle, the upside targets range towards $200, and the main target area is around $210-$220. The fact that volume is low above resistance indicates that price may move faster once acceptance is achieved. The bullish outlook will continue to come into play as long as the price is above $150-$155. The targets are then $182, $200 and $220.
Weekly indicators show consolidation within the uptrend
On the weekly chart, the MACD is still positive, indicating that the overall trend is still positive. However, the MACD is now just below the signal line and the histogram is slightly red. This is an indication that the momentum is slowing and not necessarily changing direction.
Source: Trading view
The RSI is around 54, which is above the crucial 50 mark, indicating a bullish market without any overbought signals. Momentum has restarted from a lower level, signifying a period of consolidation. Based on the RSI and MACD, it can be deduced that there may be a break in the uptrend phase, which could continue as momentum starts to rise.
Also read: AAVE explodes by 17.8%: cruel price judgment over five days
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