- AAVE emerged as the top gainer, rallying over 21%.
- Its daily trading volume skyrocketed by 94%.
Aave DAO has initiated a major governance proposal to enhance the AAVE token economy. This proposal looks for approval for the first part of the implementation of updated Aavenomics. It updates AAVE tokenomics, protocol excess revenue redistribution, and updating AAVE secondary liquidity protocol management.
Approval will trigger the implementation of these changes through a formal governance framework. The Aavenomics update TEMP CHECK was approved six months ago. Notably, Aave’s market share has increased every quarter for the past two years, and GHO crossed $200 million in supply.
Following the governance proposal, AAVE’s price experienced an increase of over 21.11% and emerged as the top gainer. The asset has broken through crucial resistances at $191.36 and $209.74.
In the early hours, the asset traded at $171.94, eventually it built the momentum to mount to a high of $216.11. At the time of writing, AAVE trades at $212.35.
Furthermore, a $2.35 million liquidation of AAVE was observed in the market during this timeframe, as per Coinglass. Concurrently, the asset’s daily trading volume has reached $689 million.
Does AAVE Have More Room to Climb?
The four-hour price trajectory of AAVE/USDT reports mixed sentiment. A move past $216 might see AAVE retest the critical $228 resistance level. The sustained uptrend of the asset could drive the price to new peaks.
Assuming the market sentiment turns bearish, the asset might rally downward to the $202 range. The weakening buying pressure raises a potential risk of a drop below $187 support. Persistent losses could hamper a rebound.
AAVE’s Moving Average Convergence Divergence (MACD) line is found above the zero line but the signal line is below indicating mixed momentum. The short-term trend is bullish. However, the overall momentum is weak.
Moreover, the Chaikin Money Flow (CMF) indicator aligned at 0.16, suggests the positive money flow with strong buying pressure in the market. Meanwhile, AAVE’s daily trading volume has surged by over 94.82%.
In addition, the Bull Bear Power (BBP) value of 22.74 implies that bulls have control over the market. AAVE’s daily relative strength index (RSI) resting at 58.20 signals neutral-to-bullish momentum in the market.
