Could AAVE Head For $500, As TVL Surges, & Whales Are Optimistic?

The AAVE price chart had been trading within a tight range for over 2 years. However, in mid-March, the price broke out of this range, reaching a high of $153 and closing at $143. Despite this increase, the price failed to sustain at the higher level and dropped to $80.0. 

After the drop to $80.0, the price began to consolidate. However, the short-term consolidation was breached with a 29.50% increase.

As of the latest update, the price has traded at $110.21, with an intraday surge of +0.57%. The market capitalization has also risen by 15.52%, standing at $2.473 Billion. The 24-hour trading volume has seen a significant increase of 149.98%, amounting to $657.33 Million.

Withdrawal From Exchange to Wallet, Why Investors are Optimistic?

The transaction involving the withdrawal of a $2.02 Million amount of 18,566 AAVE tokens from the Binance exchange by a whale or institution looks positive for the AAVE cryptocurrency. Withdrawals from exchanges typically mean that the AAVE tokens are moved to private wallets for holding.

Large-scale investments and withdrawals by institutional investors or whales often signal confidence in the AAVE’s future performance. The fact that a substantial amount of AAVE was withdrawn from a major exchange like Binance suggests that the investor sees long-term value in the token.

TVL Surged, What Does It Signify?

Since AAVE a token of the Ethereum ecosystem, Aave’s total value locked (TVL) has grown significantly by 3%, reaching $13.349 Billion as spot Ethereum ETFs got approved. This growth in TVL reflects increased usage and demand for AAVE, which was a bullish indicator for the token’s value. Also, this shows an increase in investors’ willingness to stay invested.

In what has seen as a confidence booster in AAVE, when the TVL over the Defilama platform surges, its liquidity, popularity, and usability also increase. This reflects that the higher TVL makes the AAVE asset more reliable and less riskier.

Analyst Predicts Surge Upto $500 Mark!

An analyst crypto ‘poseidon’ has tweeted on X that the price has been trading in a range of $50.0, to $120.0 for more than 700+ days, and a breakout is imminent after $130.0 was broken. The analyst also states that the break could be so devastating, it could pulll up to $500.0.

Similarly, based on the analyst tweet, the observed AAVE asset daily chart showed that it has been surging from $80.0 support and remains above the 50-day, and 200-day EMAs.

Likewise, the MACD portrays a bullish cross, with a rising histogram in AAVE at 2.95, and the RSI flashed at 70.05 by bouncing off from 14-SMA. 

Therefore, if the breakout rallies strongly surpasses the $130.0 resistance, the next goal for the AAVE price in short-term could be could be to reach the above levels, such as $160.0 and $200.0. 

Since the ETH ETF the tokens of the Ethereum ecosystem would benefit greatly from it such as AAVE, and as the analyst tweeted it could go up to $500.0 in long term.

On the contrary, if the price plunges and instead of breaking the resistance of $130.0 and slips back in to the range, then the support would be at $80.0, and 50.0 level.

Summary

The AAVE price broke out of its tight trading range and reached a high of $153 before dropping to $80. This week, it surged 29.50%. Large-scale withdrawals by institutions from exchanges like Binance signal confidence in AAVE’s future performance. Aave’s total value locked reached $13.349 Billion, and there are forecasts of a potential breakout to $500 if the price surpasses the $130 resistance. On the contrary, if the price plunges then the support would be at $80.0, and 50.0 level.