In the past day, Aave came up with more than 9% in the midst of the community hype around the potential launch on Sonic Blockchain and an increase in whale recording.
Aave (Aave) returned to an intraday highlight of $ 274.91 on 5 February and wins 9.6% in the last 24 hours while recovering from previous losses during a market -wide malaise that pushed the token short to around $ 253.44.
The market capitalization of the Altcoin was from the press of more than $ 4.1 billion, with a circulating stock of 15,060,878 tokens, while the daily trade volume fluctuated more than $ 853 million. Despite the recent profit, Aave remains 58% lower than its highest peak of $ 661.69, reached in May 2021.
There are three important reasons why Aave gathered today.
Firstly, the Aave-Community recently has an AAVE request to complete commentary proposal to bring an Eave V3 to Sonic, an EVM-compatible blockchain network. With almost 100% approval, V3 will soon be able to go live on Sonic after a final vote, the members of the community expect to improve Aave’s acceptance and income potential.
Secondly, the decentralized credit protocol succeeded in processing $ 210 million in liquidations after the flash crash of 3 February, which pose around $ 2.2 billion from the cryptomarkt. The event marked the largest single-day liquidation event for the protocol since the crash of 5 August.
Periods of extreme volatility often lead to accumulation of poor debts, because a combination of multiple liquidation requests, competitive price decreases and low demand can overwhelm the ability of a protocol to process liquidations efficiently. Aave, however, not only navigated this stress test without making extra uncaporative debts, but also managed to reduce its existing uncaporative debts by 2.7%.
This demonstration of resilience and financial stability by the project is probably interested in investors, which stimulates the demand for Aave.
Thirdly, the whale activity around an Aave has increased last week, as previously reported by crypto.news. Novelter facts From lookonchain shows a smart whale that recently purchased 102,259 Aave -Tokens, which spend around $ 27.5 million on Stuted ETH.
In the meantime, according to analyst Ali Martinez, whales picked up 62 million Aave between January 29 and February 1. (See below.)
In addition, World Liberty Financial Initiative, a decentralized financial platform associated with President Donald Trump, has actively invested in Aave in recent months.
Such large -scale purchases through whales also encourage retail investors to follow. According to Coinglass data, more than $ 363 million in centralized trade fairs has been moved last week.
Aave Price Promotion
On the 4-hour/ USDT graphic, the MACD lines have directed upwards, indicating that the bullish trend remains strong, which could feed further profit for the altcoin.
The Chaikin Money Flow Index also showed a positive reading that also points up, which suggests that a new stock of money or capital supports the current rally. Furthermore, the relative strength index recently bounced from a sold -up level and he went up.
That is why Aave could continue his meeting to test $ 375 again, the highest point in January, which is 38% above the current price.
Such a scenario can take place because the project can probably get a short squeeze in its futures market. The open interest in its Futures market has risen by 10% to $ 240 million, while the weighted financing percentage has become negative with -0.0124%.
As such, if Aave continues to rise higher due to the purchasing pressure after the recent whale recording, this can cause short holders that are confronted with liquidation, so that they have to buy their positions at higher prices. This in turn could activate a cascade of liquidations, so that the value of the asset is further evoked.
Publication: This article does not represent investment advice. The content and materials on this page are only for educational purposes.
