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- Aave surged in the past 24 hours to a three-year high of $359.
- The average age invested dollars in the coin has decreased as older coins have entered circulation.
Over the past 24 hours, Aave (AAVE) has seen strong bullish momentum, rising from $269 to a 3-year high of $359.
In fact, at the time of writing, Aave was trading at $353. This represents an increase of 32.82% on the daily charts.
The recent rally has analysts talking about the factors driving it. To the extent that Santiment posited that the massive decline in the “average dollar investment age” is one of the main factors behind Aave’s bullish trend.
A peak for 3 years
According to Santiment, Aave has surpassed the $300 mark for the first time in 3 years as large dormant investors move old coins.
Source: Santiment
With the average age invested in dollars declining, this indicates that major stakeholders are bringing their previously stagnant tokens into circulation, thus perpetuating the altcoin’s bullish momentum. If whales continue to circulate older coins, the rally could see strong bullish momentum.
This activity of whales circulating older coins has been observed over the past few hours with Blockchain Capital.
Source: SpotOnChain
According to SpotOnChain, this entity deposited 16,964 Aave tokens worth $5.06 million to FalconX after two years of dormancy.
This activity from dormant wallets is crucial to the rally, as it creates liquidity and keeps the network actively engaged.
Source: Lookonchain
While this entity was making a deposit, new buyers enter the market. As such, World Liberty went on a buying spree purchasing 3,357 tokens over the past day at an average price of $297.8.
As large holders begin to accumulate and dormant whales return coins to circulation, the rally could gain momentum.
However, it is worth noting that a rollback could occur as soon as large portfolios “put the brakes”.
Can Aave sustain the uptrend?
Aave is currently experiencing a strong uptrend as dormant whales have revived the market.
With increased buying pressure and bullish momentum, the altcoin could see more gains on its price charts.
Read Aave (AAVE) Price Prediction 2024-25
If the prevailing sentiment holds, Aave will find significant resistance around $378. A breach of this level could see the altcoin reach $400.
However, if major wallets stop releasing old coins, a rollback could occur. In such a case, Aave could drop to $297.
