Aave (AAVE) Price Analysis: Gearing Up for a Pivotal Week as CPI and PPI Data Loom

The crypto market is gearing up for a pivotal week with the release of CPI and PPI data, while Aave [AAVE] demonstrated promising performance.

Monday brought a mixed bag of results in the crypto market. While some assets, like AAVE, showed promising performance, the broader market awaited key data releases.

AAVE Surges, Countering Market Trend

AAVE’s price movements bucked the market trend, showing gains of 1.12% in the last 24 hours. Continuing its rally, AAVE also surged by 5.20% in the past week.

At the time of writing, AAVE was trading at $250.83, countering the 0.24% loss incurred by the crypto market.

AAVE’s price movements were supported by a circulating supply of 15 million tokens, giving it a market capitalization of $3.71 billion.

This market valuation was further bolstered by a 24-hour trading volume of $366.86 million, indicating active trading in the asset.

AAVE Technical Analysis: Bullish Crossovers, Resistance Levels

AAVE’s moving averages hinted at an optimistic trend. The 9-period moving average stood at $245.64, while the 21-period moving average was at $243.10.

Crucially, the price was trending above both these moving averages, indicating a potential for short-term bullish momentum.

However, resistance levels were expected around $252-$256.

The next resistance stood at $260, while support remained in the range of $243.50-$245.00.

RSI, OI, and Trading Volume

The Relative Strength Index (RSI) for AAVE was at 52.95, indicating neutral momentum with a slight bullish bias.

This level implied that AAVE was neither overbought nor oversold, leaving room for potential price movement in either direction.

Meanwhile, the MACD indicator also reflected a mild bullish sentiment.

The MACD line was at 2.14, having crossed above the signal line at -3.10, although it remained below the zero line.

According to Coinglass, AAVE’s Open Interest had dropped by 2.21%, reaching $213.97 million.

This decline, a measure of active derivative contracts, suggested a slight reduction in market participation.

However, trading volume surged by 29.42%, reaching $499.94 million, indicating growing interest in spot markets.

Historical data showed a surge in OI between October and December, peaking near $500 million.

Since then, a gradual decline has been observed, aligning with AAVE’s price stabilization between $214 and $271.

This correlation suggests that market activity is moderating as prices consolidate.

High-Value Transactions Decline

Data on large transactions (≥$100,000) showed a decrease in activity, with 159 transactions in the past 24 hours.

The 7-day high was 1,070 transactions on the 3rd of February, while the 7-day low occurred on the 8th of February, with 144 transactions.

This decline reflects reduced high-value activity since December, when AAVE’s price was near $385.