Why 68% of top traders are bullish on Aave right now
2024-12-23
Category: None

A broader cryptocurrency market is struggling, including major assets like Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). Meanwhile, AAVE is leading the market with a 15% upward momentum.

This bullish momentum is driven by heightened trader interest worldwide, as reported by the on-chain analytics firm Coinglass.

According to the data, AAVE’s futures open interest has surged by 15% in the past 24 hours, highlighting how traders are capitalizing on the current market sentiment and building new positions.

In addition to on-chain metrics, Binance’s AAVE/USDT long/short ratio currently stands at 2.10, indicating strong bullish market sentiment among traders.

On-chain data further reveals that 68.50% of top traders on Binance hold long positions, while 31.50% hold short positions.

On the chart, AAVE has formed a bullish engulfing candlestick pattern at the crucial support level of $290 but currently appears to be struggling near the resistance level of $337.

Based on recent price action and historical momentum, if the altcoin closes a daily candle above $340, there is a strong possibility it could soar by 25% to reach the $415 level in the near future.

In addition to its bullish outlook, AAVE’s recent price dip is viewed as a price correction, which now shows signs of a potential rebound.

On the positive side, AAVE’s Relative Strength Index (RSI) currently stands at 59, close to the overbought region, indicating that the altcoin has sufficient room to gain further upward momentum.