AAVE, the native token of one of the leading lending projects in the market, saw an increase of over 13% in the last 24 hours. It is believed that the announcement regarding the buyback that emerged yesterday had a significant impact on the price increase.
Aave Climbs as Demand Rises
As of the time of writing, AAVE continues to stay above the $99 level. In the last 24 hours, it was the second most profitable cryptocurrency among the top 100 cryptocurrencies by volume. During the same period, trading volume increased by 175% and exceeded $252 million.
When evaluating the price movements on the 12-hour chart, the increase in demand is noticeable. First, the Directional Movement Index (DMI) analysis (below) shows that the positive directional index (+DI) (blue line) has moved just above the negative directional index (-DI) (red line).
The DMI reveals the strength and direction of price trends for an asset. When the positive directional index moves above the negative one, it is considered that the trend direction is changing upwards. Investors generally use this situation to take long positions based on the expectation of larger price increases.
On the other hand, AAVE’s Chaikin Money Flow (CMF) indicates an upward trend. The indicator, which reveals the inflows and outflows of the asset in the market, seemed to be preparing to turn positive as of the time of writing. This situation may indicate that a larger inflow of money into AAVE could be seen in the future, leading to a price increase.
The positive trend also spread to AAVE’s derivatives market. According to Coinglass, the trading volume in the market increased by 369% in the last 24 hours, exceeding $450 million. During this period, open interest also increased by almost 50%. This indicates a significant increase in the number of new traders entering AAVE’s futures and options markets to open new positions in the last 24 hours.
AAVE Price Prediction: Strong Uptrend
AAVE’s Aroon Up Line indicated 100% as of the time of writing. When the up line indicates 100% or is close to 100%, it signals a potential upward movement or a high level that may have been reached. Therefore, if the uptrend continues, AAVE’s price could rise to $111 as reflected in the charts.
However, in a scenario where the trend turns downward, there is a risk that bears could pull the price down to $70, as seen in the charts.
