- The Long/Short Ratio stood at 1.14, indicating strong bullish sentiment among traders.
- On-chain metrics revealed that exchanges have witnessed an outflow of AAVE worth $2.5 million.
Aave [AAVE] appeared bullish and, based on its recent price action on the daily time frame, seems to be preparing for a massive upside rally.
During the recent price drop, the asset fell to a crucial support level of $285, which has a history of strong and solid price reversals.
Source: TradingView
Since the beginning of December 2024, AAVE has reached this support level multiple times, each time experiencing a massive upside rally or a price reversal.
However, the market sentiment currently seems to be recovering, which appears to be supporting the altcoin.
$2.5 million AAVE outflow
With the token’s bullish momentum, traders and investors have shown strong interest and confidence in AAVE, according to CoinGlass.
Data from Spot Inflow/Outflow reveals that exchanges have witnessed an outflow of AAVE worth $2.5 million in the past 24 hours.
When exchanges see token outflows, it typically indicates that whales or long-term holders are accumulating, as they withdraw assets to their wallets. This outflow can create significant buying pressure and drive an upside rally.
Traders’ strong bullish bets
In addition to the participation of whales and long-term holders, traders are also strongly betting on the long side, indicating a bullish signal.
At press time, the coin’s Long/Short Ratio stood at 1.14, suggesting strong bullish sentiment among traders.
Source: Coinglass
With strong participation from crypto giants, AAVE was trading near $308.50, at press time, experiencing a price surge of over 4.50% in the past 24 hours.
Additionally, during the same period, data reveals that the asset’s trading volume has increased by 12%.
AAVE technical analysis and price prediction
Besides the positive outlooks around the token, AMBCrypto’s technical analysis suggests the token is on the verge of a 30% rally. This prediction is based on the formation of a bullish double-bottom price action pattern on the daily time frame.
Read Aave’s [AAVE] Price Prediction 2025–2026
For this significant upside rally to occur, AAVE must maintain itself above the $285 level. Otherwise, it may fail.
At the time of writing, the asset was trading above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an uptrend.
