Aave’s Path to $290: Key On-Chain Metrics to Monitor

• Aave’s $140 support level shows strong buyer commitment amid market challenges.
• Key metrics, like MVRV and MDIA, indicate potential upward movement towards $290.
• Monitoring on-chain data will help investors navigate Aave’s market landscape effectively.

Aave (AAVE) is at a pivotal moment. For two months, buyers have fiercely defended the $140 support level. This strong commitment hints at solid belief among long-term holders. With a target of $200 in sight, many are curious whether AAVE can reach even greater heights. Keeping an eye on key on-chain metrics will help investors navigate the potential journey to $290 and beyond.

Analyzing the Market Dynamics

Long-term investors hold onto hope despite recent challenges. AAVE’s correlation with Bitcoin sits low at +0.29. While AAVE battles to reclaim $150, Bitcoin has steadily climbed for six weeks. This divergence suggests unique market dynamics at play.

Recent netflow data presents a mixed picture. Over the last week, AAVE experienced outflows of -435 tokens, totaling only $61,000. In contrast, the 30-day change showed inflows of +16.66k AAVE, equating to $2.3 million entering exchanges. This blend of sentiments reveals a market still seeking direction.

Data from Santiment shows dormant circulation as another critical factor. Token movements between addresses have been unusually quiet, especially compared to the mid-July selling spree. Currently, a lack of significant selling pressure offers a small ray of hope for AAVE holders.

The falling Market Value to Realized Value (MVRV) ratio indicates that three-month holders are sitting on losses. This situation could create slight selling pressure during potential price bounces towards $160. However, a deeper look reveals that profit-taking won’t necessarily stall bullish momentum.

Key Metrics to Watch for Future Gains

AAVE displays bullish signs on higher time frames. The weekly chart shows a downtrend that plagued this altcoin through 2022. Resistance formed between $100 and $120, remaining unbroken for 805 days.

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In mid-September, AAVE broke through this barrier, closing above $153 in a weekly session. This breakthrough sparked bullish intent. Resistance at $180 has since challenged this upward momentum. Sustaining defense at $140 is crucial as AAVE looks ahead.

Targets of $290 and beyond become increasingly viable. Watching the Mean Dollar Invested Age (MDIA) will prove essential. A decline in MDIA might signify a robust influx of new buyers. This shift could mark the beginning of a sustained uptrend, pushing the price of AAVE higher.