September 25, 2022


AAB’s price action finally broke through its bearish resistance after struggling to find some directional footing in recent days. The move came after the protocol announced the launch of a new liquidity mining program for Optimism.

The announcement of the Optimism liquidity mining program may have fueled a shift in investor sentiment in favor of the bulls. This, because Optimism is one of the most popular Ethereum layer 2 scaling solutions that facilitates large volumes.

According to its website, Optimism’s value in the chain is north of $800 million. In fact, it also claims to have helped save over $1 billion in gas taxes.

Tariff action of AAVE

The impact on AAVE’s price action means investors expect the move to boost demand for the cryptocurrency. Although AAVE managed to break its descending resistance, it should face friction at the pressure time level near the $101 price range.

This, because the same level presented resistance in the second half of July.

Source: TradingView

The upward trend of AAVE in the last 24 hours is due to the buying pressure that had increased since August 2nd. This was around the same time that the IMF turned into a rally, and the same is true for the RSI. However, it is unclear whether the latest rally will last.

AABE’s currently bullish performance may be short-lived unless the market manages to maintain its favorable bullish sentiments. That’s because the supply held by the top address metric has registered a 0.41% drop in the past 24 hours, indicating that the whales have cashed in.

The uptrend was also supported by a smaller increase in active addresses, compared to the previous increase in addresses on August 3.

Source: Santiment

AAB’s number of whale trades also recorded an increase in activity over the past two days and this supported the recent uptrend.

However, whale trading was within an average daily number. Nothing out of the ordinary in terms of buying pressure.

Source: Santiment

conclusion

Although AABE’s price rise reflected the Optimism announcement, its on-chain metrics explain the lack of strong momentum. Its short-term upside may therefore be limited.





Source link

Leave a Reply

Your email address will not be published.