Aave is back in the limelight after Michaël van de Poppe highlighted it as one of the top performers in the space. Although many altcoins have lost their form, AAVE has retained its structure better than most. It is for this reason that Aave is being closely watched by traders, who are looking for leaders in a difficult market.
Also Read: AAVE Holds Ascending Trendline as Analysts Eye $190–$1000 Targets
Macro Chart Cycle Shows Accumulation After Deep Bear Trend
The AAVE/USDT pair on Binance’s monthly chart illustrates a complete market cycle. There was a rally from 2020 to 2021, pushing the price to $500-$600 due to high demand.
However, a strong decline followed. In 2022, the token price declined but showed support at $60-$80. Moreover, by late 2022 and into 2023, a rounded base formation began to form, which indicated a possible departure from the distribution pattern.
Source: X
The 2024 breakout then reinforced this trend, with the formation of higher highs and higher lows that propelled the price back to the $300-$400 region.
Currently, the token is trending back towards $120-$150. If it holds above the $100-$120 level, the overall trend may continue, and there may be a possibility of another major move upwards. If it breaks down, it may return to the historical levels of $60-$80.
AAVE’s Expansion Into Real-World Assets
As expert Kapoor Kshitiz further added, the fundamentals alone cannot drive the markets. The token is no longer just a DeFi platform. It is now involved with real-world assets, with reports of $8-$10 million in monthly revenue.
Source: X
Horizon has attracted over $550 million in real-world asset deposits. However, the token is approximately 78% down from its high. According to Kapoor, what matters most is liquidity and the trend of Bitcoin.
Even if AAVE has a great story, if the price of BTC goes below $50K, the token may go lower. For spot buyers, perhaps this is the time when better entry levels will come as the market adjusts to conditions rather than stories.
Source: X
Also Read: AAVE Could Rally to $150 After Grayscale ETF Filing