Aave [AAVE] Nears Crucial Breakout Level, Signaling a Potential Surge in Price

Aave [AAVE] experienced growing momentum as it neared a crucial consolidation breakout level, signaling a potential surge in price.

Aave (CRYPTO: AAVE) price surged 15.69% in the past 24 hours to $355.01.

Aave price recently experienced a breakout from a descending channel, signaling bullish momentum.

On-chain metrics showed a 36.70% rise in daily active addresses.

After breaking out of a descending channel on the price front, Aave (CRYPTO: AAVE) began a new week of trading with a 15.69% gain. The token traded at $355.01 at press time, ranking among the top gainers in the market.

Aave price surged after clearing the $340 resistance level, setting sights on $500.

The price action on Aave’s daily chart suggested a clear recovery trend, forming higher highs and higher lows. After surging past the $340 resistance, the token encountered another resistance level at $380. Breaking through this level could extend the rally, while a failure might result in a temporary retracement.

After rising from $260 to $350 in the past month, Aave price surged by 36% to reach the $500 psychological level, which traders closely watched.

Aave network activity rose sharply

On-chain metrics revealed a 36.70% increase in daily active addresses on the network over the past seven days. This growth signaled heightened user activity and interest, which were crucial for sustaining the price increase.

Furthermore, the number of new addresses joining the platform jumped by 52.28%, indicating a strong level of adoption. These metrics highlighted growing confidence within the token’s ecosystem, which was essential for its long-term growth.

However, maintaining this pace of growth will be critical for Aave to sustain its bullish momentum in the coming weeks and months.

Aave transaction count rose modestly

The total transaction count reached 4,329 in the last 24 hours, showing a modest 1.55% increase. As the market recovered, this rise, though small, aligned with increasing trading activity.

The total number of transactions on the Aave network rose sharply over the past seven days, indicating a high level of trading activity on the platform. Both traders and long-term investors showed interest in Aave.

Stronger growth in this area could further validate the bullish sentiment and solidify the market confidence, which is essential to watch over the coming days.

Aave open interest surged as bullish prices prevailed

According to data from Coinglass, the Open Interest rose by 25.10% to reach $414.61 million, reflecting increasing speculative interest in the token.

This surge indicated that traders were betting on Aave's potential to rally further, which aligns with the current bullish price action, supporting the argument for sustained growth.

However, breaking through resistance at $380 will determine its trajectory in the short term. Therefore, sustained growth will require consistent network activity and strong market support.