AAVE Price Prediction: AAVE Bulls Gear Up for Another Leg Up as GHO Adoption Grows

Aave [AAVE] has recently broken through the $150 price level, marking a new cycle and yearly high.

Aave (CRYPTO: AAVE) price has recently breached the $150 level, marking a new cycle and yearly high. If Aave sustains levels above $154, it could accelerate and potentially reach $260, indicating a 75% gain from its current price at press time.

While Aave briefly rejected the $154 level, this is typical at key resistance points. However, the strength in Aave's price action suggested that this was a pause before further upward movement.

The MACD indicator, which had been bearish since August, has now flipped bullish, indicating a potential rally. Aave started September strong, printing a fresh high for 2024.

Aave's performance was particularly noteworthy when compared to the retail longs accounts percentage for BTC/USDT and AAVE/USDT, as highlighted by Hyblock Capital.

At press time, only 22% of retail accounts were in long positions, while Open Interest saw rising growth. This ratio, which mirrors a previous price drop before a rally, indicated that long traders were gaining control over short traders. The trend suggested that AAVE may be gearing up for another price surge.

Further analysis using Coinglass revealed steady growth in Aave's Open Interest, particularly this September.

As of the latest data, with AAVE priced at $149.26, its Open Interest had reached $204.58 million. This is a positive indicator, supporting the likelihood of a price surge in the near future.

Aave's native decentralized stablecoin, GHO, also saw strong growth. As of press time, GHO's supply increased to 135 million tokens, with a market cap of $135 million.

The total number of holders reached an all-time high as well, with 2.4K users. Around 76% of GHO's supply, or approximately 103 million tokens, was staked by 1.59K stakers.

GHO remained tightly pegged to the USD, with no significant price deviations, indicating strong stability.

Finally, Aave's founder hinted at expanding GHO's deployment to other blockchains. Currently, Aave V3 is live on multiple networks, including Ethereum (CRYPTO: ETH), Arbitrum (CRYPTO: ARB), Base, Avalanche (CRYPTO: AVAX), Polygon (CRYPTO: MATIC), and Optimism (CRYPTO: OP).

However, GHO is only deployed on ETH and ARB, leaving room for further expansion across other networks, as Stani Kulechov's post on Dune Analytics read,

“This leaves significant room for GHO to expand across additional networks.”

This potential expansion could drive further growth in both Aave and GHO, providing additional support for a higher price.

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