Aave’s Path to $290: Key On-Chain Metrics to Monitor

News

  • Aave’s $140 support level shows strong buyer commitment amid market challenges.
  • Key metrics, like MVRV and MDIA, indicate potential upward movement towards $290.
  • Monitoring on-chain data will help investors navigate Aave’s market landscape effectively.

Aave (AAVE) is at a pivotal moment. For two months, buyers have fiercely defended the $140 support level. This strong commitment hints at solid belief among long-term holders. With a target of $200 in sight, many are curious whether AAVE can reach even greater heights. Keeping an eye on key on-chain metrics will help investors navigate the potential journey to $290 and beyond.

https://twitter.com/BoomChange1/status/1853041236178833527?t=lBjNnCJJnk2V8z9NHZ_8Uw&s=19

Analyzing the Market Dynamics

Long-term investors hold onto hope despite recent challenges. AAVE’s correlation with Bitcoin sits low at +0.29. While AAVE battles to reclaim $150, Bitcoin has steadily climbed for six weeks. This divergence suggests unique market dynamics at play.

Recent netflow data presents a mixed picture. Over the last week, AAVE experienced outflows of -435 tokens, totaling only $61,000. In contrast, the 30-day change showed inflows of +16.66k AAVE, equating to $2.3 million entering exchanges. This blend of sentiments reveals a market still seeking direction.

Data from Santiment shows dormant circulation as another critical factor. Token movements between addresses have been unusually quiet, especially compared to the mid-July selling spree. Currently, a lack of significant selling pressure offers a small ray of hope for AAVE holders.

The falling Market Value to Realized Value (MVRV) ratio indicates that three-month holders are sitting on losses. This situation could create slight selling pressure during potential price bounces towards $160. However, a deeper look reveals that profit-taking won’t necessarily stall bullish momentum.

Key Metrics to Watch for Future Gains

AAVE displays bullish signs on higher time frames. The weekly chart shows a downtrend that plagued this altcoin through 2022. Resistance formed between $100 and $120, remaining unbroken for 805 days.

In mid-September, AAVE broke through this barrier, closing above $153 in a weekly session. This breakthrough sparked bullish intent. Resistance at $180 has since challenged this upward momentum. Sustaining defense at $140 is crucial as AAVE looks ahead.

Targets of $290 and beyond become increasingly viable. Watching the Mean Dollar Invested Age (MDIA) will prove essential. A decline in MDIA might signify a robust influx of new buyers. This shift could mark the beginning of a sustained uptrend, pushing the price of AAVE higher.

The post Aave’s Path to $290: Key On-Chain Metrics to Monitor appeared first on Crypto News Land.

Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0

PRC Comment Policy

Your comments MUST BE constructive with vivid and clear suggestion relating to the post.

Your comments MUST NOT be less than 5 words.

Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.

Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.

Constructive REPLY to comments is allowed

Leave a Reply