- Aave began to buy Aave on the market on a weekly basis, reducing the offer.
- Investors on the market have followed suit, accumulating Aave while they consider positive development.
Aave (Aave) recorded an increase of 1.11% in the last 24 hours, dragging slightly behind its gain of 2.91% for the week.
This 24 -hour growth follows the recent implementation by AAVE of an token buyback system, which could lead the assets in a rally.
Market players move in response to this development when they acquire the token. However, will this be enough to overthrow your 20% draw compared to last month?
What does the buyout for Aave mean?
The Aave team has reserved an annual budget of $ 50 million to buy Aave on the market, with a weekly expenditure of $ 1 million to achieve this goal.
This new development reflects a change in the structure of costs and should act as a catalyst for price growth.
Between April 9 and the press time, 10,014 aave worth 1.39 million dollars had been purchased on the market as part of this initiative.
Source: Tokenlogic
In addition, the buyout pool can extend more, according to the protocol income during this cycle. This approach, by design, realizes two things – instills the confidence of investors and potentially triggers a compression of the offer.
That said, the market did not wait long to respond. The accumulation has resumed, referring to the expectations of a rally.
Accumulation has increased on the market
There has been an increasing accumulation on the market, capable of leading to an escape from prices.
During last week, $ 13.98 million in Aave changed hands – $ 4.30 million from that of the last 24 hours.
This accumulation is remarkable, because these AAV tokens bought on the cash market are held for a long -term commitment and have passed in private wallets.
Source: tradingView
The 4 -hour graph provides better information, confirming that investors accumulate assets because it is negotiated in a symmetrical triangle model made of convergent support and resistance, with an oscillating price in it.
Finally, a violation of the higher resistance line would imply the start of a price rally. If an escape occurs, the course goal is between $ 170 and $ 187.
Also, SThe momentum of the Trunger market could repel the assets to the region of $ 200.
Liquidity growth remains high
The market reaction is not limited to accumulation and storage in private wallets. A cohort of investors moved their aave in the protocol, becoming liquidity suppliers.
Source: Defillama
This influx has propelled the total locked value (TVL) to $ 18.029 billion – its highest since early April. A growing TVL often involves growing confidence and deeper market roots – both of which support prices.
In recent weeks, Aave has focused on several developments aimed at attracting liquidity. Two of the most notable are competitive yields on the EUR and the potential launch on Aptos.
