Aave (AAVE) Price Prediction: AAVE Shows Signs of a Rebound, Can Bulls Reclaim $150?

Aave [AAVE]has been under bearish pressure amid a 6% price decline in the last seven days. However, the altcoin is now showing signs of a rebound

Aave [AAVE] price action has been interesting to follow. After seven days of downtrend, the altcoin has shown signs of recovery. At press time, AAVE was trading at $147, showcasing a 2.3% uptrend in 24 hours.

However, despite this slight uptrend, AAVE’s price action has been on a downtrend for the last seven days. But, the altcoin’s uptrend on 24 hours and 48 hours charts might be kicking off a recovery.

AAVE price analysis on the daily chart

After seven days of downtrend, AAVE showed signs of recovery. This was especially true as the Awesome Oscillator (AO) showed a bullish divergence from the price.

The AO was still in the negative, showing that bears were still dominant. However, a trend reversal was signaled by the flattening momentum and oscillator.

Moreover, the Chaikin Money Flow (CMF) showed that buying pressure was building up. This was after the indicator trended upwards and flipped to positive.

The CMF indicator showed that buying pressure was now outweighing selling pressure, which could be setting the stage for a rally.

AAVE’s price could face resistance at the 0.236 Fibonacci level ($157) if the uptrend continues following these bullish signs. Breaking this level will pave the way for another rally towards $165.

AAVE exchange reserves hit record lows, showing that selling pressure is easing

According to data from CryptoQuant, exchange reserves have dropped steadily since mid-October, despite the slight bounces in price.

This suggests that exchange reserves are at lows not seen since the start of 2023. With less AAVE available on exchanges to sell, there is room for a price recovery.

Moreover, if there is a sudden surge in demand while supply on exchanges remains low, the altcoin could make a strong bounce.

AAVE’s DeFi TVL also increased, suggesting a possible price recovery

AAVE is also set for a solid price recovery due to the steady growth of its decentralized finance (DeFi) Total Value Locked (TVL).

AAVE, the second-largest DeFi protocol, had a TVL of $13.05 billion at press time according to DeFiLlama.

This marked an increase of nearly $500 million since the start of the month. A surge in DeFi activity is usually a catalyst for price gains as AAVE is the native token used to facilitate transactions on the protocol.

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