Market Drop Just Missed This Altcoin: Uptrend Will Continue!
The cryptocurrency market is facing a downtrend that started in mid-July. The market is down about 3.2%, with most cryptocurrencies trading in the red. However, AAVE Contrary to this general decline, it has gained almost 19% in the last 7 days. Currently trading at $117.40, AAVE has reached its highest level in the last 3 months. With the increase in positive sentiment, AAVE is expected to continue its upward trend.
Reasons for AAVE’s Price Increase
The recent price increase of AAVE can be attributed to the volatility in the derivatives market. According to CoinGlass data, a large imbalance in liquidations was observed between July 31 and August 1. There are $1,165 million in short positions and $567,000 in long positions.
Additionally, open interest data also showed a sharp increase. On July 31, open interest rose to $124.59 million, a significant increase from $80 million. This increase may indicate high leverage.
Interestingly, current open interest levels are similar to November 2023, when AAVE was trading around $90. This historical context raises questions about AAVE’s future price movements in current market conditions.
Aave v3.1 Release
On July 31, Aave Labs announced the launch of Aave v3.1 on active Aave V3 networks. This new version includes improvements in security, operational efficiency, and usability.
The total value locked (TVL) on Aave currently stands at approximately $22 billion, of which approximately $19.9 billion is in Aave V3, $1.9 billion in Aave V2, and $14.6 million in Aave V1.
AAVE Price Analysis
When we look at the hourly chart of AAVE, we see that the price is exhibiting a zigzag movement in the consolidation phase. This is altcoinIt shows that he is preparing to make his next move.
According to the first scenario, AAVE could be in the third wave of a five-wave uptrend that started on July 25. In this case, AAVE is likely to break above $120 and target $150, which coincides with the 1.618 Fibonacci extension.
In a more cautious scenario, if the altcoin breaks below $108, the price can be expected to drop to $100 or slightly below and then continue its upward movement.
