Aave (AAVE) Price Prediction: Can It Break Key Resistance and Kickstart a Bullish Rally into 2024?

Aave [AAVE] has captured attention in the DeFi world, recording an astonishing 675% increase in user addresses on the Optimism network within just one week.

Aave (CRYPTO: AAVE) price has attracted attention recently, with a staggering g5 increase in user addresses on the Optimism network in just one week.

This growth has left other major players such as Chainlink and Raydium behind, raising the question of whether Aave can break the resistance and start 2024 with an upward rally.

So is this rise enough to take the token to new heights?

How is AAVE currently performing in the market?

According to the latest data, AAVE was trading at $157.37, which represents a modest increase of about 0.69% in the last 24 hours.

Although this price action shows slight positive momentum, Aave's explosive growth in Optimism could lay the foundation for a stronger upward impulse.

However, in the last 24 hours, active addresses increased by .75% and 1,233 active wallets were recorded.

This increase in the number of active users indicates increased interest in Aave, but the market is waiting for a decisive breakout to confirm the continued bullish momentum.

Source: CryptoQuant

AAVE price chart: Can it break key resistance?

On the daily chart, Aave token is moving within a distinct ascending channel.

A significant resistance level at $165.22 is preventing further upside and the token has struggled to close above this zone in recent trading sessions.

RSI is at 52.26 according to the latest data and shows neutral momentum, indicating that there is no decisive dominance of bullish or bearish trend.

Additionally, AAVE maintains a cautious uptrend, trading at its 50-day simple moving average (SMA) of $150.20. Therefore, breaking the 165.22 resistance is very important for the continuation of the rally.

Source: TradingView

Do transactions tell a different story?

Interestingly, according to CryptoQuant data, the number of transactions decreased slightly by 2.9% in the last 24 hours.

Although this is a short-term decline, it can signal a period of indecision when traders wait for a clearer market direction.

Also, this decline may indicate that the increase in user addresses on Optimism has not yet fully reflected in higher transactional activity.

Stock market net flow gives mixed signals

Exchange reserves, which increased to 2.6511M coins in the last 24 hours, show an increase of approximately 0.25%.

Usually increased reserves on exchanges indicate increased selling pressure as more tokens prepare for potential sales. This can put downward pressure on the price if demand cannot keep up in the short term.

Source: CryptoQuant

Is Aave ready for the next rally?

While Aave's bullish momentum, driven by its impressive growth in Optimism, suggests a breakout may be imminent, there are a few other signals to watch out for.

Read Aave's [AAVE] 2024–2025 Price Forecast

If it breaks the 165.22 resistance, a new rally may begin.

However, increasing stock market reserves and falling number of transactions indicate short-term difficulties. Therefore, traders must remain vigilant as the market evolves.

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