On January 31st, Friday, the crypto market witnessed a hindered recovery as Bitcoin price struggled to surpass All-time high resistance at $108,000. While the overhead supply restrained major altcoins from key breakouts, the AAVE price shows potential for a sustained rally amid growing whale interest.
According to Coingecko data, the AAVE coin holds a market cap of $5.06 Billion, while the 24-hour trading volume is at $830 million.
Key Highlights:
- A cup and handle pattern drives the current recovery trendline AAVE price
- The ongoing rally could witness overhead supply at $343 365, followed by $400.
- On-chain data highlights a surge in whale activity, reinforcing AAVE’$ potential for long-term growth.
AAVE Dominates DeFi as Whale Activity Rises
The decentralized finance (DeFi) sector is witnessing growing institutional interest, with AAVE emerging as a dominant force among lending protocols. According to onchain analysts intotheblock, the AAVE network is experiencing a surge in whale activity and bolstering its market share and position among top digital assets.
Historically, the large transaction activity has coincided with major market movements, indicating AAVE’s potential to prolong its uptrend.
However, the anticipated recovery in AAVE price could face major resistance at $343 and $365 horizontal levels, as they are baked by a supply of 1.3 Million and 971.68k AAVE tokens.
AAVE Price Impending Breakout From Cup and Handle Pattern
In a three-day rally, the AAVE price went from $282 to $334, accounting for a growth of 18.7%. With sustained buying, the altcoin could rise another 18% to challenge the multi-year resistance at $396.
The weekly chart analysis shows that this aforementioned resistance is the past of a traditional reversal pattern called cup and handle. The chart setup consists of a long U-shaped recovery indicating the accumulation trend, followed by a temporary pullback to regain exhausted bullish momentum.
A potential breakout with a weekly closing above $396 will intensify the buying pressure and set an AAVE target of $752.
Also Read: Robert Kiyosaki Warns of Bitcoin Crash But Here’s The Good News