AAVE Price Increases 26% Over the Past Week Amid Positive Sentiment
The cryptocurrency market has shown positive trends, particularly in the decentralized finance (DeFi) sector. Aave's price has surged over 26% in the past week after a modest performance during the bullish month of "Moonvember." However, recent on-chain data indicates potential challenges ahead for the token.
Is AAVE Price Going To Witness A Correction?
Crypto analyst Ali Martinez noted that investor sentiment for Aave has improved following its recent price increase. This assessment is based on Social Volume and Weighted Sentiment metrics.
The Social Volume metric tracks mentions of Aave across social media platforms within a 24-hour period, reflecting discussion levels about the asset. Weighted sentiment combines sentiment scores with social volume, indicating shifts when either metric changes significantly.
Data from Santiment shows that both social volume and positive sentiment regarding Aave have increased recently, correlating with its price surge. Despite this optimism, Martinez warns of a possible price correction, suggesting that crypto prices often move contrary to crowd sentiment.
Current price action indicates that Aave may be entering a consolidation phase, having struggled to maintain a value above $380. As of now, Aave is priced at $365, marking a slight 0.4% rise in the last 24 hours.
DeFi Coins Back At It?
While meme coins have dominated attention in this bull cycle, major DeFi tokens are starting to gain traction. Over the past week, several large-cap DeFi tokens, including AAVE, have increased their market values.
According to data from IntoTheBlock, the DeFi token sector's market capitalization has nearly doubled to $20 billion this past week.
