catch the bottom altcoin opportunity? Analyst: This coin has 3 major positives and will soon double big pump!

altcoin pullback，analysts bullish on Aave ($AAVE) subsequent trend

BTC broke 100,000 again this week before pulling back, and most altcoins also showed a pullback trend. However, analysts believe that the DeFi lending platform Aave ($AAVE) is severely undervalued based on on-chain data and is expected to see a staggering increase.

Cryptocurrency analyst Hitesh Malviya predicts that $AAVE has the potential to reach a target price of 1,000 US dollars in the future, while the current price is 270 US dollars, indicating a potential further increase of about 270%, and mentions that there are 3 bullish supports behind it.

What are the good news about Aave ($AAVE)?

Specifically, Aave's bullish signals are mainly reflected in the following aspects:

Explosive growth in deposits: According to data, the net deposit scale of Aave this year surged from $12 billion to $36 billion, with a rise of up to 200%, indicating a continuous increase in user trust in the platform.

Platform revenue has grown significantly: by the end of this year, Aave platform fee income reached $24 million, reflecting a significant increase in user activity and platform attractiveness.

Decentralized Finance ecosystem continues to expand: TradFi users are gradually shifting towards Decentralized Finance platforms, seeking higher yields, self-custody, and more transparent Financial Service. Aave, as a leading Decentralized Finance platform, is at the forefront of this trend.

Hitesh Malviya particularly emphasized that compared to traditional banks, Aave's valuation is relatively undervalued. Taking HDFC Bank in India as an example, its $300 billion in deposits corresponds to a $171 billion market capitalization, with a deposit-to-market cap ratio of 0.57; while Aave is currently only 0.13, indicating that its growth potential is still enormous.

Image source: XHitesh Malviya is optimistic about the significant growth of Aave ($AAVE)

Aave breaks the medium to long-term uptrend line

On the other hand, Investech's Technical Analysis is also bullish on $AAVE. Analysts pointed out that it has broken through the medium and long-term uptrend line, usually indicating a stronger potential for future upward movement, and there is no obvious resistance level above, so it still has the potential to continue rising.

However, Investech also pointed out that the relative strength index (RSI) of $AAVE has exceeded 70, indicating a certain overbought risk in the short term. Investors need to remain vigilant and closely monitor market changes.

Image source: investtechAave ($AAVE) price trend analysis

【Disclaimer】There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice. The analyst's views are for reference only, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific situation. Investing based on this is at your own risk.

『catch the bottomaltcoin幣 opportunity? Analyst: This coin has 3 major advantages, about to double big pump!』This article was first published in 'encryption city'