Aave (AAVE) has been surging over the last two days. The coin in fact looks like it's about to form a bullish divergence that could push the DeFi protocol towards $200. Much of this growth has been driven by whale accumulation and on-chain news. But how sustainable can it be? Here are some details:
Aave (AAVE) launched Aave V3, which will enhance capabilities within the ecosystem.
Data also shows that whales have accumulated nearly $10 million in Aave (Aave) so far.
At press time, the coin was trading at $151, up around 4% for the last 24 hours.
Data Source: Tradingview
Are we seeing a bullish breakout for Aave (AAVE)?
The launch of Aave (AAVE) V3, which was announced on Wednesday, is a huge step. The new protocol is expected to unlock borrowing and other DeFi products within the Aave ecosystem. It will also help optimize gas fees and facilitate cross-chain transactions in the future.
This news was expected to have a large impact on the price action. But it’s the accumulation by whales that makes AAVE one of the projects to watch. As of now, whales have added nearly $10 million worth of AAVE into their portfolio.
This suggests that there is a lot of confidence in the coin. It is likely that AAVE will continue to surge in the days ahead and could even challenge $200 in the future.
Why should you consider Aave (AAVE)?
Other than whale accumulation, there are still many other factors that make AAVE a decent buy. For starters, it is a highly innovative DeFi protocol that has constantly upgraded its network over the years.
With DeFi expected to explode in the coming months, it would make a lot of sense to hold tokens like this. Besides, AAVE still remains relatively undervalued compared to other major chains.