AAVE Price 10% Short From 3-year High; Is Breakout Imminent?

During Tuesday’s market session, the crypto market showcased a neutral stance following sideways from Bitcoin and Ethereum. Most major cryptocurrencies, including AAVE, have witnessed a slowdown in recovery momentum but retained an uptrend for the next breakout. With a notable spike in onchain activity, the AAVE price is positioned for a major breakout from multi-year resistance.

According to Coingecko data, the global market cap stands at $3.67 Trillion, while the 24-hour trading volume is at $390 Billion.

Key Highlights:

A rounding bottom pattern governs the current recovery trend in AAVE price.
AAVE coin rally is 10% away from challenging a 35-month resistance for a major breakout
The $260 stands as key resistance against crypto buyers.

AAVE Sees Massive Growth as Whales Bet on Favorable DeFi Policies

In the last two weeks, the AAVE price witnessed remarkable growth from $151.86 to $235, projecting 55%, while the market cap spiked to $3.5 Billion. The sharp recovery is primarily fueled by trader speculation on potential favorable DeFi conditions under the pro-crypto policies speculated under Trump’s influence.

According to Santiment data, the AAVE coin recorded 587 whale transactions—the highest since March 2022, $385.9 million in on-chain transaction volume—the largest since October 2021, and 2,346 unique addresses transacting on the network, marking the highest activity since June 2023.

📊 In the past 2 weeks, AAVE’s market cap has grown by +53% with aid from trader speculation of more advantageous DeFi conditions under Trump’s pro-crypto policies.

Massive daily milestones in the #40 market cap’s on-chain data have appeared in the past 24 hours, including:

🐳… pic.twitter.com/pVyqfqOLr0

— Santiment (@santimentfeed) December 3, 2024

While these sudden spikes could trigger initial volatility for the altcoin, a steady influx of positive onchain reinforcement could drive a sustained long-term rally.

Rounding Bottom Formation Hints Major Trend Reversal

By the presstime, the AAVE price trades at $237.5 with an intraday gain of 0.88%. The rising price, backed by increasing volume and onchain activity, hints at the potential for a sustained uptrend.

Thus, the altcoin is poised for another 10% surge to challenge the 3-year high resistance of $260. The aforementioned also marks the key neckline resistance of a major reversal pattern called the rounding bottom.

It is characterized by a gradual decline in price followed by a prolonged consolidation period and then a gradual recovery that forms a “U” shape on the price chart.