The post AAVE Coin Price Skyrockets 19%—What’s Behind Its Surge Amidst Crypto Market Fall? appeared first on Coinpedia Fintech News
The cryptocurrency market has continued to fall, with losses starting in mid-July. The crypto market has lost about 3.2% of its value, and most cryptocurrencies are trading in red. However, AAVE is an exception, gaining nearly 19% in the past 7 days.
Currently trading at $117.40, AAVE has hit its highest level in three months. With growing positive sentiment, AAVE looks set to continue rising.
Why AAVE Price Rising
AAVE’s recent price rise can be traced back to activity in the derivatives market.. However, data from CoinGlass on July 31 and August 1 revealed a significant imbalance in liquidations, with $1.165 million in short positions compared to $567,000 in long positions.
Additionally, open interest metrics showed a sharp increase, reaching $124.59 million on July 31, up from $80 million. This surge in open interest, indicating a high number of outstanding derivative contracts, suggests significant leverage is currently in play.
Interestingly, current open interest levels are similar to those in November 2023, when AAVE’s price was around $90. This historical context raises questions about AAVE’s future price movements in the current market.
Aave v3.1 goes live
On 31 July, Aave Labs announced the launch of Aave v3.1 across all networks with active Aave V3 instances. This new version includes improvements to security, operational efficiency, and usability.
Currently, the total value locked (TVL) in Aave is around $22 billion, with approximately $19.9 billion on Aave V3, $1.9 billion on V2, and $14.6 million on V1, according to DeFiLlama.
AAVE Price Analysis
Looking at AAVE’s hourly chart, the price has been moving in a zig-zag pattern during a consolidation phase before surging upward today. This suggests AAVE might be preparing for its next move.
In the first scenario, AAVE could be in the third wave of a five-wave upward trend that started on July 25. If this happens, AAVE might break above $120 and aim for $150, matching the 1.618 Fibonacci extension.
In the second, more cautious scenario, if AAVE drops below $108, it might decline further to $100 or slightly lower before continuing its upward path.