Is AAVE Preparing for another rally following its recent performance?
The cryptocurrency market has been rallying over the past few days, and the prices of some coins have added significant percentages during that period.
AAVE, the native token of the Aave Protocol, has been one of the top performers in the market over the past few days. The token’s price has surged by more than 5% over the past 24 hours as the broader cryptocurrency market recovers.
The token has been rallying since the Swiss-based SEBA Bank. SEBA Bank submitted a proposal to the Aave Protocol team seeking to become whitelisted on Arc. This means that SEBA wants to allow its institutional investors to gain broader access to the Aave platform.
The adoption is excellent news for the Aave platform as it would mean institutional investors would gain access to its decentralized lending services. AAVE has been rallying since the announcement and could be set for further gains.
Crypto analyst Michaël van de Poppe predicts that AAVE is preparing to embark on another rally as the token’s price is down by more than 50% from its current all-time high. Thanks to its recent adoption, Poppe believes AAVE could rally higher soon.
$AAVE went down almost 80% since ATH and support held once again.
Ready for a new run. pic.twitter.com/B6LaT479SD
— Michaël van de Poppe (@CryptoMichNL) December 25, 2021
Key levels to watch
The AAVE/USD 4-hour chart is one of the most bullish in the cryptocurrency space at the moment, thanks to the token’s recent performance. The technical indicators show that AAVE is performing excellently and could record further gains soon.
AAVE is trading above its 50-day moving average, indicating that it could rally higher soon. The MACD line is above the neutral zone, a sign that AAVE is currently in a bullish momentum. Meanwhile, the 14-day relative strength index of 55 shows that AAVE could be heading into the overbought territory.
If the current market momentum is sustained, AAVE could rally higher towards the $300 mark before the end of the day. An extended rally could see AAVE move past the second major resistance level around $319 per coin.