Venture capitalist Arthur Cheong, the CEO of DeFiance Capital, is making waves in the crypto world with his prediction of a massive breakout for decentralized finance (DeFi) altcoin Aave (AAVE). In a recent post on social media platform X, Cheong shared his insights with his 176,400 followers, highlighting several factors that point to a bullish trend for Aave.
One key indicator that Cheong pointed out is Aave’s open interest (OI), which measures the total number of outstanding derivatives contracts for a particular asset. According to Cheong, Aave’s OI may have hit a bottom after a significant decline in the past month. Despite this drop, Aave’s price has remained resilient, signaling potential for a strong rally in the near future.
Cheong also noted that Aave’s funding rate is negative, indicating that there are more short positions than long positions on the altcoin. This imbalance in positions is often seen as a bullish signal by traders, suggesting that Aave may be gearing up for a significant price increase.
In a surprising twist, Cheong mentioned that former President Donald Trump could be a catalyst for Aave’s bullish momentum. Trump is reportedly using Aave for the launch of his new DeFi crypto project, World Liberty Financial. This unexpected endorsement from a high-profile figure like Trump could bring increased attention and investment to Aave, further fueling its rally.
Cheong previously highlighted Aave’s breakout from a multi-year consolidation pattern on the weekly timeframe, suggesting that the altcoin is on track to reclaim its all-time high and solidify the DeFi Renaissance. With Aave currently trading at $148.88 and up 7.4% in the last 24 hours, all eyes are on this promising altcoin as it gears up for a potential breakout.
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As always, remember to do your own research and invest wisely in the ever-changing world of digital assets.
(Source: Arthur Cheong/X)
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