AAVE Price Soars 26% In A Single Week — Will Rising FOMO Lead To A Bust?
December 14 2024 - 6:00AM
NEWSBTC
The cryptocurrency market has been fairly positive over the past
week, with the decentralized finance (DeFi) sector and tokens
particularly impressive over the last seven-day span. Aave price,
for instance, seems to have taken off after making a somewhat tame
performance in the remarkably bullish month of “Moonvember.”
According to data from CoinGecko, the price of AAVE has increased
by more than 26% over the past week. However, the latest on-chain
data suggests that the DeFi token may face some hurdles in its
bullish trajectory and suffer a slight setback in the short term.
Is AAVE Price Going To Witness A Correction? In a recent post on
the X platform, prominent crypto analyst Ali Martinez revealed that
the investor sentiment around the Aave token has become
increasingly positive following its latest price upswing. This
on-chain observation is based on the Social Volume and Weighted
Sentiment metrics. Related Reading: Bitcoin Daily Bollinger Bands
Expand, Why BTC Price Could Rise To $120,000 As Early As Next Week
The Social Volume metric measures the total number of mentions of a
particular crypto asset on various social media platforms in the
last 24 hours. In essence, it tracks the degree of discussion
surrounding a cryptocurrency on social media. Meanwhile, weighted
sentiment is a product of sentiment score and social volume.
Typically, there is a significant shift in this metric when the
social volume is high and there is a specific average sentiment
(either positive or negative). Based on data from Santiment, the
social volume and positive sentiment around the AAVE price action
have grown significantly over the past few days. As shown in the
chart below, this soaring positive sentiment correlates with the
Aave price surge over the past week. According to Martinez, a brief
price correction might be on the cards for Aave, especially with
the crypto crowd seemingly hyped about the DeFi token’s price
performance. This is based on the notion — backed by historical
data — that crypto prices often in the opposite direction of the
crowd. Recent price action data shows that the Aave price might be
falling into something of a consolidation range, having failed to
hold above the $380 mark on Friday. As of this writing, the Aave
token is valued at $365, reflecting a mere 0.4% increase in the
past 24 hours. DeFi Coins Back At It? Most of the attention has
gone to the meme coins — and deservedly so — in this bull cycle.
However, it appears that prominent DeFi coins are beginning to pull
their weight and stake a claim for the spotlight. Related Reading:
Dogecoin Bullish Takeover: DOGE To Outperform Bitcoin By 2,400% —
Here’s How The past week saw many large-cap DeFi tokens, besides
AAVE, grow in market value. According to data from IntoTheBlock,
the market capitalization of the DeFi token sector nearly doubled
to $20 billion in the past week. Featured image from Unsplash,
chart from TradingView
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