AAVE Price Prediction: Why AAVE Is Going UP Today?

13-12-2024 By: Lokesh Gupta
AAVE Price Prediction: Why AAVE Is Going UP Today?

AAVE Price Prediction: What Factors Could Drive AAVE Next Price Surge?

AAVE’s Remarkable Performance in Q4

AAVE’s price action has been on a tear since the beginning of November. After a noteworthy 50% gain last month, the token exceeded expectations by soaring another 82% in December. This steady climb points to sustained market enthusiasm and suggests a long-term bullish trend is taking shape.

Trump’s $1 Million Buy Sparks Fresh Rally

The market received an additional jolt when reports surfaced that former U.S. President Donald Trump invested $1 million in AAVE, purchasing 3,357 tokens at an average of $297.8. In response, AAVE’s value spiked by nearly 20%.

Balancer v3 Upgrade and Aave’s Strategic Alliances

AAVE’s recent price growth can be attributed in part to its partnership with Balancer. The forthcoming Balancer v3 DEX and portfolio management updates—refined through Aave’s lending technology—are generating enthusiasm, likely enhancing liquidity and increasing yields for users.

Meanwhile, Aave’s planned deployment on the Consensys-backed Linea zk-rollup is set to improve transaction speeds and lower fees. With the community’s support, this integration marks a key scalability milestone that could bolster AAVE’s adoption and long-term value.

Bullish Technical Indicators Support Uptrend

On the weekly chart, AAVE has formed four consecutive bullish candlesticks, with each one outpacing its predecessor. The recent breakout from an ascending parallel channel has positioned the token for even greater gains.

Technical indicators reinforce this positive outlook. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) are both trending higher, each crossing above key bullish thresholds.

Eyeing Key Resistance Levels: $431 and Beyond

AAVE is now nearing a pivotal horizontal resistance near $430. This critical zone, which aligns with the 0.618 Fibonacci retracement level measured against the full corrective phase, stands as a potential inflection point. Overcoming this barrier could open the door to the next significant resistance at $535 (0.786 Fibonacci level).

What Next For AAVE

If AAVE surpasses these milestones, the possibility of challenging its previous all-time high and eventually approaching $1,000—a level associated with the 1.618% Fibonacci extension—becomes more tangible. While these price targets remain speculative, the combination of strong fundamentals, high-profile endorsements, and technical momentum suggests that AAVE’s bullish trajectory may be far from over.

Also read: Bitcoin Price Prediction 2024: Why Bitcoin Is Going Up
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