- The number of active AAVE addresses has doubled in the last three months.
- AAVE price action was bullish, but indicators hinted at a possible trend reversal.
Aave (AAVE) has shown promising performance in terms of network activity over the past few weeks. This indicates an increase in its adoption and usage. Apart from this, the price of the token has also seen a similar increase. Let’s see what happens.
The growing activity of the Aave network
IntoTheBlock recently published a tweet highlighting a notable development related to AAVE. According to the tweet, activity on the blockchain has increased this month, with the number of active addresses doubling compared to three months ago.
AMBCrypto then took a closer look at the blockchain’s network activity. Our analysis revealed that the blockchain’s daily active addresses have also increased over the past week.
To be precise, the number has increased by more than 140% in the last seven days. Thanks to this, AAVE’s daily transactions have also followed a similar upward trend during the same period.
Source: IntoTheBlock
However, when AMBCrypto checked the Token Terminal data, it was revealed that the blockchain was not performing well in terms of value captured.
Surprisingly, despite the increase in network activity, the blockchain’s fees have decreased over the last 30 days. This has also led to a slight decrease in its revenue.
Source: Token Terminal
The AAVE bulls have arrived
Meanwhile, AAVE bulls took control of the market, pushing the token’s price higher.
According to CoinMarketCapThe token’s price has increased by over 4% in the last 24 hours. At the time of writing, the token was trading at $133.01 with a market cap of over $1.98 billion.
Our analysis of Santiment data revealed that the token’s volume increased alongside its price, which served as the basis for the bullish rally.
AAVE’s MVRV ratio has also increased, suggesting a further price rally. However, selling pressure on the token has increased over the past week as its supply on exchanges has increased. Typically, an increase in selling pressure leads to price corrections.
Source: Santiment
We then looked at the token’s daily chart to see if the uptrend would continue. The MACD technical indicator displayed a bullish crossover.
But the Relative Strength Index (RSI) has entered the overbought zone, which could increase selling pressure. Additionally, the Chaikin Money Flow (CMF) has also registered a decline, suggesting that AAVE’s bullish rally could soon come to an end.
Source: TradingView
Realistic or not, here it is AAVE Market Cap in BTC
AMBCrypto’s analysis of Hyblock Capital data revealed that if the bullish rally ends, investors could see AAVE drop to $101 in the coming weeks.
However, if the bulls manage to maintain their lead, the token could soon reach $140.
Source: Hyblock Capital
