DeFi Altcoin Aave Is Set Up ‘Very Well’ for Next Leg of the Rally Due to These Factors: Investor Arthur Cheong
Venture capitalist Arthur Cheong believes that one decentralized finance (DeFi) altcoin may be gearing up for a massive breakout.
The DeFiance Capital CEO tells his 176,400 followers on the social media platform X that several factors are signaling bullishness for lending platform Aave ( AAVE ).
He suggests Aave’s open interest (OI), which is the total number of outstanding derivatives contracts for a given asset, may have bottomed after a large decline in the last month.
“AAVE price is holding up very well despite the leverage flush on the perps over the past few weeks:
1. Open Interest at 30 days low, dropped by 50% compared to September 11th.
2. Funding rate negative.
Set it up very well for the next leg of rally.”
Source: Arthur Cheong/X
A negative funding rate means there are more short positions than long positions on AAVE, which some traders perceive to be a bullish indicator.
He also suggests that that Former President Donald Trump using Aave for the launch of World Liberty Financial, his new DeFi crypto project, may be a bullish catalyst.
“If you tell me in 2020 we will have a former and potential future President of the USA supporting the launch of a separate instance on Aave, even the biggest DeFi bull wouldn’t believe it. But here we are. ‘We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.'”
Last month, he said Aave appeared to be breaking out of a multi-year consolidation pattern on the weekly timeframe.
“AAVE is trading at the highest level since May 2022 and seems to be breaking out from a two-year consolidation pattern. Expect ATH (all-time high) reclaim to further solidify DeFi Renaissance.”
Source: Arthur Cheong/X
Aave is trading for $148.88 at time of writing, up 7.4% in the last 24 hours.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on X , Facebook and Telegram
Surf The Daily Hodl Mix
Featured Image: Shutterstock/iurii/AtlasbyAtlas Studio
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Weekly Crypto Market Watch (11.10-11.17): Extreme Market Panic, Privacy Sector Stands Out
Last week, both the open interest and trading volume of altcoin contracts on exchanges declined, reflecting a continued lack of liquidity following the sharp drop on October 11.
Multiple grand rewards are coming, TRON ecosystem Thanksgiving feast begins
Five major projects within the TRON ecosystem will jointly launch a Thanksgiving event, offering a feast of both rewards and experiences to the community through trading competitions, community support activities, and staking rewards.
Yala Faces Turmoil as Stability Falters Dramatically
In Brief Yala experienced a dramatic 52.9% decline, challenging its stability. Liquidity management emerged as a critical vulnerability in stablecoins. Investor skepticism deepened despite major fund support.
Trending news
MoreCrypto prices
More
