- Aave is showing positive momentum, driven by a 675% increase in Optimism user addresses.
- The number of transactions has fallen while foreign exchange reserves are rising, indicating potential short-term selling pressure.
Aaf [AAVE] has turned heads in the DeFi world, recording an astonishing 675% increase in user addresses on the Optimism network in just one week.
This growth has outpaced other major players such as Chainlink and Raydium, raising questions about whether Aave is ready to break through resistance and spark a bullish rally in 2024.
But is this rise enough to propel the token to new highs?
How does AAVE perform in the current market?
At the time of writing, AAVE was trading at $157.37, reflecting a modest increase of 0.69% over the past 24 hours.
While this price action showed slightly positive momentum, Aave’s explosive growth in optimism adoption could set the stage for stronger upside.
However, the number of active addresses has increased by 18.75% in the last 24 hours, with 1,233 active wallets registered.
This increase in active users indicated growing interest in Aave, but the market was still waiting for a decisive breakout that would confirm the continued upward momentum.
Source: CryptoQuant
AAVE Price Chart: Can It Break Major Resistance?
Looking at Aave’s daily chart, the token remains within a clear ascending channel.
A significant resistance level at $165.22 prevents further upside, with the token struggling to close above this zone in recent trading sessions.
The RSI stood at 52.26 at the time of writing, indicating neutral momentum, indicating that neither bulls nor bears have a decisive advantage.
Furthermore, with AAVE trading above its 50-day simple moving average (SMA) at $150.20, the trend remains cautiously bullish. Therefore, breaking above the $165.22 resistance level is crucial for the rally to continue.
Source: TradingView
Do the transactions tell a different story?
Interestingly, the number of transactions fell slightly by 2.9% in the last 24 hours CryptoQuant data.
While this is a short-term decline, it could signal a period of indecision among traders as they wait for clearer direction from the market.
Furthermore, this decline may indicate that the increase in user addresses on Optimism has not yet fully translated into higher transaction activity.
The exchange grid current shows mixed signals
Research on foreign exchange reserves, which increased to 2.6511 million coins, reflects a rise of 0.25% in the past 24 hours.
In general, rising reserves on exchanges indicate increased selling pressure as more tokens are prepared for a potential sell-off. This could put downward pressure on prices in the short term if demand does not keep up.
Source: CryptoQuant
Is Aave ready for the next rally?
While Aave’s bullish momentum, driven by impressive growth based on optimism, suggests a breakout is imminent, several warning signs remain.
Read Aave’s [AAVE] Price forecast 2024–2025
If it can break the resistance at $165.22, it could spark another rally.
However, rising foreign exchange reserves and declining transactions point to potential short-term challenges. Therefore, traders must remain vigilant as the market continues to develop.
