Amid the bulls & bears setting the dominance, AAVE price is on the second day of constant gains, rallying 18% in the last 24 hours. Interestingly, the token was bullish for days but fell with the crypto market crash, disturbing its performance. However, that is changing today, and there are multiple reasons behind that.
Why is AAVE Price Pumping Today?
AAVE is among the top profiting cryptos due to its recent performance. However, it is also the leading DeFi protocol and is known for its services and collaboration. One such proposed collaboration is with Chainlink’s Smart Value Recapture (SVR), which works on rerouting the revenue back to the users from the maximum extractable value (MEV).
This collaboration is in the initial steps of discussion as the AAVE ecosystem is facing issues related to MEV extraction as the Aave proposal says: –
Aave and its liquidation bonus work, but lately a “problem” has appeared that deserves some type of optimization: MEV (Maximal Extractable Value).
With the Chainlink SVR, Aave can easily redirect 40% of the MEV liquidation profits back to the users. Additionally, it could play a significant role in value distribution and management, eventually benefitting the ecosystem users. Although this is in process, the user’s sentiments have begun pumping the token.
The Aave trading volume is up 62% to $1.44M, pushing the price to $379.02, with an 18% rally in the last 24 hours. This surge has officially pulled the token from the drop, bringing the monthly gains to 107%. With this, AAVE has reached a three-year high and stands just 43% away from the ATH of $666.86, set in 2021.
Interestingly, all the DeFi tokens are feeling a similar boost, with the investors paying significant attention, pushing the market cap to 5% and trading volume to 20% higher. Analysts believe this is just the beginning of the AAVE price rally, as more is coming.
AAVE Price to Hit $410 Next?
The Aave exchange holding has been heavily impacted in the last few days, as the Nansen exchange reports revealed a 2% drop. This happened as the bullishness was rising for the token, leading to investors holding their Aave token rather than selling it. This is eventually building a selling pressure on the token. Another significant factor in building the buying pressure is the Trump project, as World Liberty Financial bought 6,000 AAVE, which is worth $2.2M today.
Regarding the technical stats, the RSI is neutral, and the moving averages support the buyer sentiments. With that, many analysts, including Ali, have predicted further bullishness as the charts formed the “Adam & Eve” pattern, with the crucial resistance at $342. Interestingly, the token has surpassed that, currently trading at $379, with the next resistance at $386; any move above that will push the Aave price around $410 per Ali’s breakout target.
What’s In There For You?
The Aave token is in its prime after hitting the three-year high. Over the month alone, it has made 107% returns despite the crypto market and Bitcoin price crash and is still increasing. With that, the AAVE price has surged 18% in the last 24 hours, and analysts predict further rallies under the profiting charts formations. With that, the DeFi token will likely move towards $410 and higher if the Aave and Chainlink collaboration falls through.
The post AAVE Price Hits 18%, Why It’s Pumping Today? appeared first on CoinGape.