Leading DeFi protocol, Aave (AAVE) crypto, has been on a roll this week, with a 12% price rise. A combination of increasing demand and a rise in whale inflows fuels this surge. For the past few weeks, the AAVE price continued to trade in a significant uptrend. It has formed higher high rows.
This week, the AAVE price rebounded from the 50-day EMA mark. It has climbed above the key EMAs, signaling buyers’ dominance. Moreover, the uptrend was intact, and the bull army may persist in accumulation. It could send AAVE toward $200 next.
A Look at the Whale Transaction
Data from Lookonchain highlighted that a prominent whale investor executed a long position by buying 31,173 AAVE. It amounted to $4.8 Million.
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Later, he borrowed $2.7 Million in GHO and swapped it into USDC. The Whale did not stop there, and the USDC was further deposited into Coinbase to buy more AAVE.
This transaction disclosed the growing institutional interest in AAVE crypto. It could trigger a significant rise in the near sessions.
AAVE Price Aims for $200: What Does Price Action Indicate?
AAVE price analysis on a daily chart conveyed a bullish bias as it comfortably rests above the key EMAs. This week, a three-day bullish streak was observed, and AAVE price reclaimed the $150 level.
AAVE’s recent price rise has brought the altcoin to $152.15. It noted an intraday increase of over 4.78%. With a market cap of $2.27 Billion, AAVE was ranked the 39th largest crypto among the top 100.
At press time, the Relative Strength Index (RSI) line crossed the midline region around 53. It noted a positive crossover. The token has substantial room for additional gains. Traders would watch closely if it crosses the 60 mark for confirmed signs of a significant upward move.
Notably, AAVE crypto made a double bottom formation around the $135 mark. It was poised for a substantial upward movement. A daily close above the $175 mark would confirm the bullish move. This could send AAVE price toward the $200 mark ahead.
What Does On-Chain Data Say?
Alongside the weekly price surge of over 10%, the macro momentum showed improvement. Furthermore, the Sharpe ratio turned positive.
The value returned to the positive region this week, around 1.23 at press time. This bullish stance suggested that the reward of buying AAVE crypto outweighs the risk. That makes it a significant bet to carry long positions at the moment.
Since Sep 6, the OI-weighted funding rate stayed positive, 0.0119% at press time. A positive funding rate indicated a higher demand for long positions. It means more traders are buying AAVE and expecting a surge ahead.
Furthermore, the Open Interest (OI) surged over 13.80% to $151.80 Million. It noted a prolonged buildup activity over the past 24 hours. The immediate support zones for AAVE were $140 and $130. At the same time, the upside hurdles were $165 and $180 to watch out for the following sessions.
