AAVE Cryptocurrency Rebounds 7% Tuesday: Here’s Why
The AAVE cryptocurrency is up over 7% on Tuesday, after the Aave Chan Initiative proposed a new buyback program in a new phase of “Aavenomics.” Aave Chan Initiative founder Marc Zeller posted an Aave Request for Comment (ARFC) proposal on Tuesday. The founder is seeking approval on the first phase of the “Aavenomics” update. The update would focus on AAVE tokenomics improvements, protocol excess revenue redistribution, secondary liquidity protocol management, and the deprecation of LEND.
“After half a decade of hard work, with the ACI, we’re proud to present the updated Aavenomics proposal to the Aave DAO,” Zeller said on X. “We consider it the most important proposal in our history, feel free to have a read and provide feedback.” According to the new proposal, AAVE DAO plans to buy back $1 million AAVE weekly by introducing a buyback and distributing excess revenue. This is expected to enhance the protocol’s financial performance and overall liquidity. Additionally, the proposal includes the termination of the LEND token migration, ensuring a strong financial structure with sustained growth.
AAVE Price, TV Moves Up
The trading volume over the AAVE platform surged notably by over 84% Tuesday, reaching close to $620 million. While the cryptocurrency has been down nearly 21% in the past month, it is regaining some steam because of the new Aavenomics proposal.
According to the above date from TradingView, AAVE is trading within an expanding channel, holding the ascending trend line as a strong support. However, the cryptocurrency has yet to rise above the broken support, while the MACD & CMF continue to remain questionable. The MACD is about to undergo a bullish crossover, but the levels remain within the negative range. In addition, the CMF has rebounded and risen above 0 but has not yet surged above 0.14 since the start of the year.
Also Read: How High Will Dogecoin Trade If Bitwise’s ETF Gets An Approval?
Therefore, the AAVE price must surge and achieve a resistance at $227 initially and later at $280, which could fade the bearish sentiment around the token. With this, the price could reclaim $300 and head towards a new high.
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Cardano Price Triggers Major Buy Signal – Here’s Where ADA Is Headed Next
Since dipping as low as $0.75 earlier in the session, the Cardano (ADA) price has staged a massive intra-day rebound, triggering a major technical buy signal.
The Cardano price was last around $0.93, over 20% up from its earlier lows and re-igniting hopes that the cryptocurrency could soon retest the highs it hit above $1.30 last December.
Broader risk appetite in financial markets took a substantial turn for the better on Tuesday, despite Trump’s imposition of tariffs on Mexico, Canada and China, which just came into force.
Positive rhetoric from Ukrainian President Zelenskyy regarding the possibility of signing a minerals deal with the USA that could soon end the Ukraine/Russia war could be bolstering sentiment.
Perhaps more important could be the market’s growing confidence that the Fed will deliver more rate cuts this year to protect against any incoming protracted US economic malaise.
Per the CME Fed Watch tool, the market’s base case now appears to be for three rate cuts this year, as opposed to bets for only one or even zero just weeks ago.
Whatever the reason for the turnaround, Cardano is looking very bullish right now. Its Sunday surge on Trump’s crypto reserve announcement saw it break above a medium-term downtrend.
And Tuesday’s rebound from intraday lows, when the Cardano price was retesting this former downtrend, is a strong technical signal that the bulls have regained control of this market.
Chart analysis now suggests a strong likelihood that the Cardano price’s next move will be back toward its late 2024 highs in the $1.30 area.
How High Can the Cardano Price Go in 2025?
Whilst Tuesday has in the end turned into a macro risk-on day, macro risks remain elevated with Trump still intent on pursuing trade wars, and a US economic slowdown still very much on the horizon as D.O.G.E austerity reduces fiscal stimulus.
This remains a very complicated macro backdrop for crypto traders to navigate, with a lot of two-way volatility likely.
That said, the outlook for the Cardano price remains tilted very much to the upside, and not just because of the aforementioned technical buy signal.
The Trump admin appears intent on including Cardano, alongside other “made in America” cryptos like Solana and XRP, in its crypto reserve.
This represents a major upside wild card for Cardano, as does the potential for the US Treasury to adopt Cardano as its decentralized and transparent payment ledger.
Couple this with the high likelihood that spot Cardano ETFs receive approval in 2025, and it’s obvious that 2025 could be a record year of adoption for the crypto.
Moreover, Cardano’s push to become the go-to Bitcoin DeFi side-chain could also be a major narrative.
— Leader Alpha (@LeaderAlphaNews) February 21, 2025
BREAKING: $BTC defi on #Cardano IS COMING
$ADA will ALSO be consumed as the gas fee
pic.twitter.com/VMND190lQd
All said, while conditions are expected to remain bumpy – there certainly isn’t enough liquidity in the market right now for a true alt-season – risks are strongly tilted towards the upside for the Cardano price this year, with a retest of 2021 highs above $3.0 very possible.
ADA is a strong candidate for one of the best cryptos to accumulate in the months ahead.
The post Cardano Price Triggers Major Buy Signal – Here’s Where ADA Is Headed Next appeared first on Cryptonews.
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