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Until last Wednesday, the AAVE token of the eponymous lending protocol had a price of less than $280 per unit. From that date, the currency began to rise rapidly to a peak of $390 this Saturday. This is one of the most powerful rallies of the week in the crypto market.
At the time of writing this note, the currency is withdrawn to $360 per unit. However, this pullback does not at all negate the powerful performance of +30% in the last 7 days. On the other hand, CoinMarketCap data shows that within a month the rise is much more impressive.
In that period, the token presents +118%, starting from $164 per coin. As you can see, this is a large increase in the short term. Thus, judging by this significant momentum, the most logical question among investors has to do with the ceiling of this trend.
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Will the AAVE token price reach $500 or is it approaching a sharp correction? To have an approximate answer to this question, some crucial elements of this currency must be evaluated. The first of them is that it has been experiencing sustained growth for a long time.
During the last year ending this December 15, the currency reflects +222%, suggesting that not everything is speculation in its rally. According to predictions based on the charts, the coin will surpass $750 in the next three months.
Prediction based on technical analysis suggests that the AAVE token will experience a strong rally in the first quarter of 2025. Source: CoinCodex
Is AAVE Token Headed Towards $500?
There are numerous arguments to assume that the price of AAVE will reach $500 in 2025. Among them is the fact that its underlying protocol is one of the largest in the world of decentralized finance. Its total value locked (TVL) is no less than $22.5 billion, according to DeFiLlama, and it ranks second globally in this field of DeFi.
Over the last month, the TVL (which is the equivalent of TradFi AUM) of the protocol grew by 32.34%. This means that the currency presents a growing volume of activity, which directly leads to strong demand for the AAVE token.
Other interesting data that suggests organic growth in demand for the currency is the amount staked. The latter represents 19.65% of the market capitalization, that is, $1,073 million dollars. Meanwhile, the protocol’s internal trade volume also exceeds $1 billion.
These data described above make evident the fact that it is not a currency that only rises with the fever of the moment.
On the other hand, in the field of technical analysis, the graphs suggest that the currency will reach $753 dollars in March 2025. Of 32 indicators applied by the CoinCodex portal, 29 suggest an upward trend. Meanwhile, the market sentiment index shows 91% bullish expectations. The best average price of the token will be $826 in May 2025.
It is important to clarify that these predictions refer to historical behaviors, which means that they are only referential and not certain to be fulfilled.
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