In the times when volatility strikes the crypto markets, the market participants become uncertain over the next price action. In such situations, the positive rounds usually attract a significant volume onto the platform, which is seen with AAVE. The trading volume over the platform surged notably by over 65%, reaching close to $595 million. With this, the AAVE price reclaims $200, which is believed to elevate the token above the bearish influence.
AAVE DAO Proposes a Buyback Plan
In a recent update, AAVE DAO introduced a major governance proposal that aims to strengthen the revenue model. The excess revenue is expected to be redistributed, and upgrades for the liquidity management have also been proposed. The approval for these proposals and implementation could be through a formal process.
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. Besides, the proposal also includes the termination of the LEND token migration, ensuring a strong financial structure with sustained growth.
Will the AAVE Price Reach $300?
The AAVE price had slipped below the crucial support zone as the bears held a tight grip over the rally in the last few days of February. Although the bulls tried hard to nullify the bearish influence, the crypto market crash dragged the levels close to $180. However, the recent announcement of a new buyback plan seems to have induced a significant buying volume onto the token. However, the price is still required to surpass major turbulence, which may validate a rise from the bearish influence.
As seen in the above chart, the AAVE price is trading within an expanding channel, holding the ascending trend line as a strong support. However, the token has yet to rise above the broken support, while the MACD & CMF continue to remain uncertain, which raises some concerns over the next price action. The MACD is about to undergo a bullish crossover, but the levels remain within the negative range. Besides, the CMF has rebounded and risen above 0 but has not yet surged above 0.14 since the start of the year.
Therefore, the AAVE price is required to surge and achieve the interim resistance at $227 initially and later at $280, which could fade the bearish clouds hovering over the token. With this, the price could reclaim $300 and head towards new yearly highs.
