- Aave swims ashore after diving to the primary support at $470.
- The bulls' eyes fixated on highs beyond $600 as technicals improve.
- AAVE's transaction history and network growth metric align in support of the uptrend.
Aave slumped from the all-time high traded at $620, sabotaging the upswing anticipated to hit $1,000 soon. The initially gradual corrected developed into a full-blown freefall amid Bitcoin's woes this week. As the largest cryptocurrency dived under $50,000, AAVE explored downstream levels beneath $600.
The bearish leg stretched to $470, where support had been guaranteed by the 50 Simple Moving Average (SMA) and the 100 SMA on the four-hour chart. At this level, the bulls snatched the mantle from the bears, eyeing another relay to price levels beyond $600.
Aave outpaces altcoins as $620 beckons
The decentralized finance (Defi) token is teetering at $540 following a persistent uplift from the primary support at $470. However, AAVE faces a considerable resistance at $550, which must come out of the way to open the door the next upswing to $600 and $620, respectively.
AAVE/USD four-hour chart
According to the In/Out of the Money Around Price (IOMAP) on-chain model by IntoTheBlock, Aave has very little resistance that could bar it from rising toward $600. The model directs attention to the region running from $554 to $556. Here, 23 addresses previously bundled up nearly 10,000 AAVE. With a substantial tailwind force, Aave would most likely crack this hurdle for gains beyond $600.
Aave IOMAP chart
On the flip side, the model reveals the Defi token sitting on top of an immensely buyer concentrated zone between $480 and $496. Here, roughly 3,400 addresses previously purchased 624,000 AAVE. Bears will have a challenge cracking past this area; hence the slightest resistance path is upward.
Similarly, the "Daily Active Addresses '' metric by IntoTheBlock adds credence to the bullish after revealing that Aave's network growth has been on an upward pattern in the last few days. For instance, the addresses joining the protocol stood roughly at 1,100 on May 13 from a 30-day low of 512.
Aave network growth
It is essential to keep in mind that an improving network is a bullish signal. It shows that the project is gaining traction in adoption while the token tends to benefit from increased speculation. Therefore, if the newly created addresses continue to grow, Aave will have the ability to sustain the uptrend.