Is AAVE Poised for a Major Rally After Hitting a 5-Month High?

AAVE Surges 36%, Hits Five-Month High Amidst Market Uncertainty

AAVE has defied market volatility with a remarkable 36% surge in the past week, reaching a five-month high of $143. It currently trades at $135.98, marking a 5% increase in the past 24 hours. Trading volume has risen by 17%, while the market capitalization has grown by 5%, even as Bitcoin faces a slight decline.

Factors Driving AAVE's Bullish Momentum

Whale accumulation and increased adoption are the primary drivers behind AAVE's bullish momentum. Whale activity has been significant, with major investors acquiring substantial amounts of AAVE tokens. On-chain data indicate that whale "0xa923" recently invested $6.65 million in AAVE, while "0x0945" purchased $1.45 million worth within hours.

AAVE's Increasing Adoption

AAVE's adoption is also on the rise, as reflected in the growing number of active wallets and the increased open interest, which recently reached $137.62 million, a level not seen since June 2022.

Potential Targets and Support Levels

Technical analysis suggests that the 9-day Exponential Moving Average (EMA) at $117 provides solid support for the bullish trend. If bullish momentum continues, resistance levels at $153 and $166 could be tested. However, should the trend reverse, the price may drop to $104, with additional support at $94.

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