AAVE and LINK Price Returns are Higher than ETH and BTC – Is Altcoins Season Beginning?

AAVE is the native asset of one of the largest liquidity protocols in the crypto space. The token has gained 22.9% in the past day and currently stands at $219 per coin.

Trading volumes for AAVE have exploded by 114.2% as well during this period. On Monday, the protocol announced that it now supported transactions via the Sonic Labs Ethereum Virtual Machine (EVM).

Just a couple of days later, $33 million worth of crypto assets flowed to AAVE on Sonic. The Sonic Mainnet is an Ethereum-compatible layer-one blockchain that offers faster transaction execution speeds and lower fees.

Chainlink (LINK) Rises 15% After OpenUSDT Launch

LINK is up 15% in the past 24 hours as well and trading volumes are up by 29% after the protocol announced the launch of a new stablecoin called OpenUSDT created for the OP Superchain ecosystem.

OpenUSDT is currently available on 7 different blockchains. It gives investors and decentralized finance (DeFi) protocols expanded access to Tether’s stablecoin (USDT) while offering lower transaction costs.

Increased adoption of Chainlink’s blockchain interoperability solution CCIP drives demand for LINK. Hence, the launch of OpenUSDT will likely attract higher trading volumes for this asset.

“With sub-cent transaction fees, stablecoin gas payments, seamless on- and off-ramps, and as the only Layer-2 with native USDT following Celo’s migration next month, serving as the backbone for OpenUSDT is a way for us to realize this vision,” commented the co-founder of Celo – the layer-two Ethereum blockchain that will be responsible for locking USDT to mint OpenUSDT and maintain a 1:1 ratio between the two assets.

AAVE Momentum Picks Up as It Retests Key Resistance

AAVE’s positive performance in the past 2 days is pushing the token to retest its trend line resistance.

The token has been on a downtrend since the beginning of the year and has made several lower highs along the way.

It is still too early to tell if these latest developments will help AAVE reverse its downtrend as the price has to move above the $275 level first before jumping to conclusions.

However, momentum indicators are favoring a bullish short-term outlook as the Relative Strength Index (RSI) has once again crossed above the signal line while the MACD’s histogram is posting its first positive reading since February 23.

A long position at current levels would offer a low risk-reward ratio. A pullback along the way may be needed to secure a better entry price.

Falling Wedge Breakout Could Push LINK to $20

LINK’s daily chart shows that Sunday’s uptick resulted in a bullish breakout of a falling wedge pattern that has been unfolding for a while.

Despite Monday’s pullback, the price action is once again confirming this breakout. Falling wedges are high-probability technical setups that could deliver significant gains in the near term.

Momentum indicators also support a bullish outlook for LINK as the Relative Strength Index (RSI) managed to stay above the signal line despite the volatility while the MACD’s histogram has moved to positive territory.

The $20 level would be a plausible near-term target for LINK. Setting a stop price at around $12 based on the latest relevant support, this trade would offer an unattractive 1.12 risk-reward ratio.

Same as with AAVE, traders would have to wait for a pullback to secure a more appealing entry price if they share this bullish outlook.