DeFi Altcoin Aave Is Set Up ‘Very Well’ for Next Leg of the Rally Due to These Factors: Investor Arthur Cheong
Venture capitalist Arthur Cheong believes that one decentralized finance (DeFi) altcoin may be gearing up for a massive breakout. The DeFiance Capital CEO tells his 176,400 followers on the social media platform X that several factors are signaling bullishness for lending platform Aave (AAVE). He suggests Aave’s open interest (OI), which is the total number of outstanding derivatives contracts for a given asset, may have bottomed after a large decline in the last month. “AAVE price is holding up very well despite the leverage flush on the perps over the past few weeks: 1. Open Interest at 30 days low, dropped by 50% compared to September 11th. 2. Funding rate negative. Set it up very well for the next leg of rally.” Source: Arthur Cheong/X A negative funding rate means there are more short positions than long positions on AAVE, which some traders perceive to be a bullish indicator. He also suggests that that Former President Donald Trump u...