Key highlights:
- AAVE is holding key support ahead of the $96.60 and $100 resistance levels
- On-chain activity is gaining momentum, supported by rising wallet activity and record new wallet growth since 2021
- Aave V4, multichain expansion, and bullish sentiment are keeping investors focused on AAVE
since October 2021. These numbers have been featured in both Coindesk and Yahoo Finance as well.
On the other hand, Aave also holds one of the top spots in terms of decentralized borrowing and lending platforms, with $12.2 billion TVL. However, the number of wallets does not necessarily ensure price increase. What they do suggest is that fresh users are entering the ecosystem rather than existing holders simply moving assets between addresses.
The real test comes next. Investors will be watching to see whether these new users begin supplying collateral, borrowing assets, and actively using Aave’s lending markets over the coming weeks.
What comes next for AAVE?
This rise is certainly a promising sign, but it would take more than just one day to make sure about a new trend in place. The coming days should tell us whether we can talk about the AAVE’s recovery.
Technically, $96.60 is the important figure to pay attention to here. In case of daily closure above this resistance level, there is an opportunity for $100 and even $115.70. And $150 might turn out to be in reach under bullish pressure.
If AAVE fails to hold the support at the 100-day MA at $87.42, the price may drop down to the $80 levels and below them to former cycle lows.
According to CoinCodex’s AAVE price prediction, the price could move to $123.13 over the next month, indicating further upside if buyers can break above the $100 psychological resistance and build enough momentum to target the $115.70 resistance level.
Source:: AAVE Price Prediction: AAVE Holds Key Support as Wallet Activity Hits 5-Year High