More than 9% rallies compared to the previous days amidst the community propagation around an uttric in its potential launch and whale accumulation on Sonic blockchain.
Aave (Aave) was rebound for an Intrade high of $ 274.91 on 5 February, increased by 9.6% in the last 24 hours, while during a market-wide recession recovering from earlier damage, which gave tokens about 253.44 Pushed down to the dollar.
Altcoin’s market cap was seated as a press time as a press time, with a supply of 15,060,878 tokens, while its daily trading volume exceeded $ 853 million. Despite the recent advantage, Aave reached in May 2021, is 58% less than its all -time high of $ 661.69.
Today there are three main reasons why rallies took place today.
First, the Aave community recently fulfilled the Ave V3 for a commentary proposal to bring AVE V3 to Sonic, EVM-Sangchain Network. With approximately 100% approval, V3 may soon be live on Sonic after a final vote, which community members hope to enhance Aave’s adoption and revenue capacity.
Second, the decentralized borrowed protocol managed to process $ 210 million in liquidity after the February 3 flash accident, eliminating about $ 2.2 billion from the Crypto market. The incident marked the largest single-day liquidation phenomenon for the protocol since the August 5 accident.
The duration of excessive instability often leads to poor debt accumulation, as a combination of multiple liquidity requests, the decline of sharp value, and low demand can overwhelm the ability to efficiently process the ability of a protocol. However, AAVE not only navigated this stress test without additional poor debt, but also managed to reduce its existing poor debt by 2.7%.
This performance of flexibility and financial stability by the project has renewed the interests of investors, demanding AAVE.
Third, the whale activity around AAVE has increased in the last one week, as reported by the first Crypto.NUS. New data A smart whale from Lukanchen suggests that recently 102,259 Aave tokens have been purchased, which spend on a stacking ath of about $ 27.5 million.
Meanwhile, according to analyst Ali Martinez, Whale picked up 62 million AAVs between 29 and February 1. (See below.)
Additionally, the World Liberty Financial Initiative, a decentralized finance platform associated with President Donald Trump, is actively investing in AAVE in recent months.
Such massive purchases by whale also encourages retail investors to follow the suit. According to the data from Coinglass, AVE worth more than $ 363 million went out of centralized exchanges in the last week.
A price action
On the 4-hour/ USDT chart, MACD lines have pointed upwards, indicating that the rapid trend remains strong, which can fuel further benefits for altcoin.
The Chaikin Money Flow Index also showed a positive reading, which indicates upwards, suggesting that a new supply of money or capital is supporting the current rally. In addition, the relative power index recently jumped from an oversold level and moving upwards.
Therefore, Aave can continue its rally again $ 375, its highest point in January, which is 38% above the current value.
Such a landscape can play out, as the project can possibly withstand a small squeeze in its futures market. Its futures market has increased by 10% to $ 240 million, while its weighted funding rate is negative at -0.0124%.
For example, if Aave is increasing more due to procurement pressure after recent whale accumulation, then it can give birth to small holders facing liquidation, forcing them to buy their positions back at high prices Can be done. This, in turn, can trigger a waterfall of liquidation, allowing the value of the property to be carried forward.
Disclosure: This article does not represent investment advice. The materials and materials painted on this page are only for educational purposes.
