AAVE Price Hits Five-Month High Amid Aavenomics Update

AAVE price showed an insignificant growth of 0.1% during the U.S. market session on Friday. While the intraday trades are neutral

AAVE price showed an insignificant growth of 0.1% during the U.S. market session on Friday. While the intraday trades are neutral, the short-term holders have acquired a lot of profit as AAVE coin bounced from $90 to $136— a 50% increase within two weeks.

In the last two weeks, the AAVE price recorded a notable recovery, reaching a five-month high of $143.7 on Wednesday. The bullish momentum trend followed the recent proposal of “Aavenomics” update, which aims to transform AAVE’s economic model by focusing on reducing risks and enhancing rewards for stakers.

Instead of depending on inflationary yields, AAVE plans to utilize revenue generated by the protocol, marking a shift towards a more sustainable and potentially less volatile system.

If the AAVE price managed to sustain above the $132.5 level, the buyers could prolong this recovery by 13% before a major breakout rally at $153, followed by a push to $200.

The Average Directional Index at 26% accentuates the buyers have sufficient momentum to lead the further rally.

AAVE Coin Eyes Minor Pullback Before Next Leap

In the daily chart, the AAVE price is far from the fast-moving 20 and 50 Exponential moving averages (EMAs). Typically, this indicates an overextended rally, which leads to a short pullback for buyers to regain strength.

Data from Santiment analytics shows the 30-day MVRV (Market Value to Realised Value) climbed significantly from negative territory in early July 2024 to positive levels above 20% as of late August 2024. This indicates the short-term holders have acquired significant growth, which increases the likelihood of profit-taking.

The AAVE price encountered resistance at the 200-day EMA ($126) during the previous trading session. While the buyers failed to push the AAVE price above this level, they managed to sustain buying pressure at the 100-day EMA ($132.5), ensuring the AAVE price remained within a bullish structure on the daily time frame.

The Moving Average Convergence Divergence (MACD) indicator remained above the zero line, indicating a bullish momentum, while the Chaikin Money Flow (CMF) indicator also depicted a strong accumulation by the buyers.

AAVE Price Hits Five-Month High Amid Aavenomics Update

In the last two weeks, the AAVE price recorded a notable recovery, reaching a five-month high of $143.7 on Wednesday. The bullish momentum trend followed the recent proposal of “Aavenomics” update, which aims to transform AAVE’s economic model by focusing on reducing risks and enhancing rewards for stakers.

Instead of depending on inflationary yields, AAVE plans to utilize revenue generated by the protocol, marking a shift towards a more sustainable and potentially less volatile system.

Despite an aggressive rally, a whale recently accumulated 15,747 AAVE( worth around $2.12M) from Binance accounting to Lookonchain.

Smart money accumulation typically signals a bullish outlook for the cryptocurrency, but this whale recorded losses in two trades with LDO and Pendle.

A whale withdrew 15,747 $AAVE($2.12M) from #Binance 1 hour ago.

This whale also traded $LDO and $PENDLE before but lost money on both.

He lost $1.54M(-54%) on $LDO and $640K(-39%) on $PENDLE.https://t.co/SxZuPS1gw0 pic.twitter.com/FL9Ob139eh

— Lookonchain (@lookonchain) August 23, 2024

If the AAVE price managed to sustain above the $132.5 level, the buyers could prolong this recovery by 13% before a major breakout rally at $153, followed by a push to $200.

The Average Directional Index at 26% accentuates the buyers have sufficient momentum to lead the further rally.

AAVE Coin Eyes Minor Pullback Before Next Leap

In the daily chart, the AAVE price is far from the fast-moving 20 and 50 Exponential moving averages (EMAs). Typically, this indicates an overextended rally, which leads to a short pullback for buyers to regain strength.

Data from Santiment analytics shows the 30-day MVRV (Market Value to Realised Value) climbed significantly from negative territory in early July 2024 to positive levels above 20% as of late August 2024. This indicates the short-term holders have acquired substantial growth, which increases the likelihood of profit-

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