AAVE Price Breaks $100, Market Activity Soars After Fee Switch Proposal

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AAVE Price Breaks $100, Market Activity Soars After Fee Switch Proposal – Crypto News

Published

12 months ago

July 26, 2024

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Aave price is the main topic in the crypto space following the proposal to activate a fee switch and buy back tokens from the open market. According to Aave-Chan Initiative founder Mark Zeller, if the proposal passes, it will generate about $60 million annually for AAVE holders. Aave is one of the most successful DeFi lending protocols, with over $12 billion in total value locked (TVL) per CoinGecko.

The price of AAVE increased by 15.7% in the last 24 hours to trade at $102, but technical analysis projects the asset may extend gains to $110 in the short term and $130 in the mid-term.

AAVE Open Interest, Funding Rate, Volume Spike

Data from Coinalyze shows an uptick in market activity after announcing potential protocol changes. AAVE’s open interest surged by 46% on futures and perpetual across exchanges as the aggregated funding rate spiked to 0.0059. Coinalyze predicts this will rise to 0.0113 in the next 24 hours, indicating that the AAVE price may continue to rise in the short term.

Aggregates AAVE Open Interest | Source: Coinalyze

Interestingly, the total value of liquidations following the 15% price spike remained below $520,000 across tracked exchanges. This may be because AAVE has been trending inside a consolidation zone for the past 105 days, and most sell stops are concentrated around $110 (Buy-Side Liquidity) and $80 (Sell-Side Liquidity).

CoinGecko shows that AAVE’s daily trading volume surged 190%, signaling an uptick in market activity. Coupled with increasing prices, this may indicate a potential price increase in the future.

AAVE Price Forecast Reveals May Reclaim $130 is This Happens

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AAVE price chart shows stability in a volatile market, maintaining a tight range for over three months. The price of AAVE is trending above the 50-day and 200-day EMA, but the range cancels any discernible trend direction.

The Relative Strength Index (RSI) is at 59.48, moving upward but not yet in the overbought territory, suggesting increasing bullish momentum and room for more upside. The Chaikin Money Flow (CMF) is at 0.13, indicating positive money flow into the asset, which supports the bullish case.

Data from IntotheBlock shows that if the AAVE breaks above the range ($110), the next resistance level is $128, where 17,000 addresses purchased $1.82 million worth of underwater AAVE tokens.

Aave Global In/Out

On the flip side, if it resolves below the range ($80), the next major support level is at $67, where 16,380 addresses purchased $1.19 million AAVE tokens, which are in profit.

Frequently Asked Questions (FAQs)

The AAVE fee switch proposal is a plan to activate a fee mechanism that would allow the Aave protocol to collect fees on transactions and buy back tokens from the open market.

Following the announcement, AAVE’s price increased by 15.7% in the last 24 hours, trading at $102. The price is projected to potentially reach $110 in the short term and $130 in the mid-term.

If the fee switch proposal is implemented, it could result in a $60 million annual revenue share for AAVE holders, potentially boosting the value of the tokens and providing additional income.

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