Aave Price Forecast: Defi Token AAVE Makes Compelling Move Toward $400
- Aave price uptrend gains traction after holding above the 100 SMA.
- A decrease in exchange inflow reveals diminishing selling pressure as investors prefer to hold.
- The transaction history model reveals robust support, bolstering market stability.
Aave price is back to trading above $300 after gaining considerable ground from June declines to $180. The uptrend has, over the last couple of weeks, shaped in an ascending parallel channel. Besides, overcoming several resistance levels has continues to add credence to the bullish outlook.
Aave Price Bullish Assault Intensifies
Aave has a bullish outlook based on a 12-hour chart. Besides the ascending parallel channel, short-term indicators remain bullish. For instance, the Moving Average Convergence Divergence (MACD) indicator holds above the mean line supporting the uptrend. Note that a call to buy AAVE has been sustained since June 26.
However, a break above the next crucial hurdle at $340 will help formulate the rest of the journey to $400. This move will also trigger another bullish signal as the 12-day exponential moving average (EMA) adds credence to the bullish narrative.
AAVE/USD 12-hour chart
A decrease in exchange inflow is a bullish signal, according to Santiment’s on-chain data. Note that this metric tracks the number of AAVE tokens sent to known exchange wallets. When these tokens reduce, selling pressure also goes down, allowing bulls to push for gains quickly.
At the momentum, nearly 10,400 AAVE tokens have been sent to the exchange, tracked on a three-month trailing average compared to 15,900 recorded on June 12. As long as few tokens are sent to exchange platforms, Aave will deal with lighter selling pressure.
Aave exchange inflow chart
At the same time, IntoTheBlock’s IOMAP model reveals a slightly smooth path toward $350. This metric shows the number of addresses that bought AAVE tokens and groups them in ranges alongside the volume attracted.
Note that these ranges are indicative of support and resistance zones. For now, the model highlights very a seller congestion zone between $310 and $319. Here, 1,300 addresses previously bundled up 867,000 AAVE. Clearing the resistance at this zone will bring AAVE closer to $350 and perhaps bolster it to $400.
Aave IOMAP model
On the downside, immense support has been illustrated by the model between $282 and $291. Here, around 1,700 addresses are reported to have bought 3.17 million AAVE tokens. The buyer congestion will ensure that bearish advances are kept at bay while giving bulls ample time to work toward $400.