AAVE Price Breakout Above $185 Could Open Path Toward $240

AAVE price is nearing a critical resistance level that may shape its next move. Strong market fundamentals continue to reinforce its bullish trend.

The price of AAVE is approaching a critical resistance level that could determine its next move, according to technical analysis.

As the cryptocurrency market continues to heat up, strong market fundamentals are also reinforcing the bullish trend. If momentum persists, we could see Avalanche experience a decisive breakout.

AAVE Price Breakout Above $185 Could Open Path Toward $240

According to market analyst CW8900, the AAVE price has been testing a critical resistance level at $185. This level is described as a “sell wall,” where selling pressure has historically limited price advances.

However, if Avalanche manages to break above this $185 zone with significant volume, the analyst highlighted that no substantial resistance is expected until $240.

This suggests that a decisive breakout could provide a clear path for a rally toward the higher target.

AAVE price has seen a surge after breaking out of a descending channel. The breakout from this bearish structure indicates growing buying pressure and a potential trend reversal.

Traders are keeping a close eye on the $185 level for confirmation of further bullish continuation.

Strong DeFi Fundamentals Underpin The Growth of Avalanche

According to DeepChain, fundamentals in the decentralized finance (DeFi) sector continue to perform strongly within the Avalanche protocol.

The protocol currently holds $19.88 Billion in total value locked, showcasing strong user engagement. Additionally, $11.46 Billion is actively being borrowed, indicating high market participation and demand.

Through its operation, the protocol delivers yearly revenue of $67.6 Million. This comes from collecting $351.5 Million in fees. The approach demonstrated an investment strategy. It uses reinvestment to grow liquidity bases over short-term profit extraction operations.

The project maintains financial independence through strong revenue streams. This enables extended development and network infrastructure expansion.

The treasury of the protocol holds $87.9 Million in reserves, ensuring long-term financial stability. These assets provide operational security for around three market cycles, despite annual expenses of $18 Million.

Also, 20% of AAVE tokens valued at $483.9 Million currently exist in stake positions. Staking keeps the network secure because it displays solid community dedication by risking actual token investments.

Token Metrics and Market Sentiment Data

On-chain data from TokenPodium indicates that 48% of AAVE holders are in the green, while 5% are in the black or the red, and 47% are in the red.

The present distribution signals a suitable relationship between recent and long-term holders within the market.

Major token holders currently control 80% of all AAVE supply, raising concerns regarding price manipulation potential. The pool of AAVE token holders shows that 72% have held their tokens for over one year.

The long-term holding of tokens strengthens the stability of prices within the market. Data from BitsBank indicates that AAVE shows 0.76 price correlation to Bitcoin. It shares most movement patterns with Bitcoin market trends.

Exchange netflow metrics from Glassnode show that accumulation outweighed selling pressure. Investors have withdrawn $15.78 Million in AAVE, signaling confidence in the asset.

Technical Indicators Analysis

Technical analysis of the AAVE price 1-day chart shows the completion of a falling wedge pattern, a bullish reversal formation. Multiple daily closes above it have confirmed the breakout.

The Net Flow Index (NFI) marks a position of +75.49 to indicate enthusiastic market purchases. RSI has crossed the 50 threshold, indicating a rising trend of bullish pressure.

The Cumulative Volume Delta indicator shows an increase of buying pressure that exceeds selling pressure throughout. The price movement triggers stronger upward momentum when trading volume grows after breaking out.

According to market analysts, the current breakout position indicates that Avalanche could reach the $240 price level. AAVE price prediction uses standards measured from the maximum point of the wedge formation.

(Writer’s Note: The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Avancez and should not be taken as investment advice.)