Aave (AAVE) Price Prediction July 26: AAVE Price Breaks $100 As Market Activity Soars on Fee Switch Proposal. What You Need to Do Right Now!

full version at coinfomania

Aave (AAVE), the governance token of the leading lending protocol, has experienced a significant price rally. As of the latest CMC data, AAVE is trading at $102.22, marking a 15.7% surge within the past 24 hours.

This price increase is primarily because of a new idea to change how fees work and to buy back tokens from the market. Mark Zeller, who started the Aave-Chan Initiative, thinks this idea could make about $60 million annually for AAVE holders.

The proposal has sparked a flurry of activity in the market. AAVE’s daily trading volume surged 190% in the past 24 hours at the time of writing, indicating a heightened interest in the token. The price rally has also been accompanied by a 150% increase in trading volume. This surge in market activity indicates a growing interest in AAVE and could potentially lead to further price increases. These could be interpreted as clear signs that the market is responding positively to the proposal and investors are keen to get a piece of the action.

The Governance Proposal is About Fee Switch and Token Buy-Back Program

This proposal aims to introduce two key changes. First, the proposal suggests implementing a fee switch mechanism. While details are still emerging, this could enhance the protocol’s sustainability and efficiency by adjusting fees dynamically. Secondly, Aave may soon initiate a token buy-back program. Such programs typically involve using a portion of protocol fees to purchase and burn AAVE tokens, potentially reducing the circulating supply and increasing scarcity.

Technical Indicators Confirm Bullish Momentum

Several technical indicators support the bullish sentiment surrounding AAVE. Looking at the Directional Movement Index (DMI), the +DI (positive directional index) has crossed above the -DI (negative directional index) on a 12-hour chart. This crossover signals a shift from bearish to bullish, prompting traders to consider long positions in anticipation of further price growth.

The Chaikin Money Flow (CMF), which measures money flow into or out of an asset, has initiated an uptrend. Crossing above the zero line indicates increasing buying pressure, reinforcing the current uptrend. Currently, at 100%, the AAVE Aroon Up Line suggests a strong uptrend. If this trend persists, the price of AAVE could rally to $111 or more.

Source: TradingView

On the other hand, our analysis shows that the average price of AAVE over the last 200 days is going up and could reach $105.15 by July 30, 2024. At the same time, the average price over the last 50 days is expected to go up to $90.87.

The current Relative Strength Index (RSI) for AAVE is at 54.93, which suggests that people might start selling AAVE as of writing. This is further supported by data from foremost data analytics yPredict.

Source: Coinfomania

The increase in AAVE’s price has also seen a lot of activity in the market. In the last day, the total value of AAVE bought and sold has gone over $244 million, which is a 150% increase. This shows that more people are interested in this type of digital money. The amount of AAVE being traded has also exceeded $450 million, a 369% increase. Also, more people are starting to trade AAVE’s futures and options.

Price Forecasts and What Might Happen Next

Source: yPredict
While the price might go up to $110 in the short term, it could reach $130 in the medium term. According to Coinfomania’s current data, AAVE is now trading at $99.4 as of writing and could go up 8.89% to $105.15 by July 30. As always, the prices of cryptocurrencies can change quickly, so AAVE holders should keep an eye on any developments related to Aave’s ideas and market trends.

The post Aave (AAVE) Price Prediction July 26: AAVE Price Breaks $100 As Market Activity Soars on Fee Switch Proposal. What You Need to Do Right Now! appeared first on Coinfomania.