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AAVE Price Soars 16%, Bulls Target $135 After Jan 4 Gains

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The Aave price is picking up on Ethereum’s afterburners, rallying on the last day, eclipsing lead cryptocurrencies to be one of the top performers in the top 10.

At the time of writing (Jan 5), the AAVE/USDT price is up 16 percent in the past 24 hours, breezing past December 2020 high and registering a new all-time high as per Binance data.

Specifically, there is a pronounced uptick in average daily trading volume, which rose 42 percent to $235.6 million from a circulating supply of 11.2 million AAVE tokens.

In all, there will be 16 million tokens, meaning its liquidity mining is in the third phase, where a climactic demand may be expected.

AAVE Price Overview

From price charts, the path of least resistance is northwards. Propelling the upsurge is a spike in trading volumes that further spurs AAVE’s demand.

Pumped by superior gains on the last day of trading, buyers are in the driving seat in a classic bullish breakout pattern. As DeFi draws more users, the token demand—judging from the spike in trading volume in the last week, is the precursor for even more gains in the medium term.

The immediate support at $95, marking December 2020 highs, is the new reaction point should AAVE prices pullback from spot levels. If there is trend continuation and bulls press on the buying pedal, registering even more gains, the first target will be $135, the 1.618 Fibonacci extension level of the November to December 2020 trade range.

Encouraging for bulls is the high level of participation that drove AAVE/USDT above $95, a critical sell wall, a key driver that may further drive prices to immediate target levels based on recent price action.

Possible catalyzers from now on are DeFi and the expansion of ETH/USD price.

AAVE Market Movers

As of writing, the total value locked by DeFi dApps stood at $18 billion.

Out of this, $2.48 billion were locked in Aave’s v1 and 2. The latter launched in early December, introducing innovations like Yield and Collateral swaps and Batch Flash Loans.

The protocol is also decentralized.

With authorization from the UK FCA:

Aave is a lending protocol famous for innovating Flash loans.

With new users joining in, experimenting with DeFi, GUSD becomes the seventh stablecoin in Aave following the approval of AIP-6.

The launch of Aave v2 has been successful. By Jan 4, it had over $200 million in liquidity with flash records registered in TUSD and USDC.

AAVE Price Prediction

AAVE Price Soars 16%, Bulls Target $135 After Jan 4 Gains

The AAVE/USDT price gained versus the USD, adding 16 percent on the last day.

Trading within a bullish breakout pattern, traders are buying the dips, soaking up losses of the Asian session. The result is a long lower wick hinting of demand in lower time frames.

Notably, accompanying the rally above $95 and $100 is the high trading volume per Jan 4 bull bar.

Also, momentum is building up in lower time frames, and now bars are banding along the upper BB.

The first bull target is $115, the 1.618 percent Fibonacci extension level of the November to December trade range.

Losses below $100 could pour cold water on AAVE bulls’ prospects.

Chart courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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