The price of AAVE continued to increase on Saturday, reaching its highest point since March 6 of this year, as a result of a decrease in exchange balances and a decrease in the total value held in its network
AAVE’s market capitalization increased by 95% from its lowest point on April 7 to $221.91, resulting in a market capitalization of over $3.3 billion.
Investors are continuing to accumulate additional AAVE tokens, particularly following Ethereum’s robust breakout and its first test of the critical resistance point at $2,400 since February, according to CoinGlass data.
AAVE balances on exchanges decreased from 4.87 million to 4.76 million in the previous week. With this decrease, the total supply on exchanges reached 29.74%.
A decrease in exchange balances indicates that holders are refraining from disposing of their assets, which is advantageous for a particular cryptocurrency.
The price of AAVE also increased as it consolidated its status as the largest participant in the decentralized finance industry.
Data from DeFi Llama indicates that its total value locked has increased by 35% in the past 30 days to $24.2 billion, surpassing Lido (LDO)’s $21.6 billion in assets.
AAVE has become one of the most profitable players in the crypto market as a result of this development, as its year-to-date fees have increased to $224 million.
AAVE is a decentralized “banking” platform that allows users to generate interest from their inactive assets. This interest is generated by its lending operations, which allow users to borrow at competitive rates.
Technical analysis of the AAVE price
The daily chart indicates that the AAVE price reached its lowest point at $113.50 on April 7, and has since rebounded to its greatest level since March 6. It has surpassed the 50-day Exponential Moving Average and the critical psychological threshold of $1,000.
The MACD indicator has crossed the zero line, and the Relative Strength Index has risen to the overbought level of 75.
This rebound occurred subsequent to the formation of a declining wedge pattern between December and April.
Consequently, the coin is expected to continue moving upward as investors pursue the critical resistance level of $400, which was its highest point in December.
This action would indicate an 83% increase from the existing level. A decline below the $170 support level will render the bullish outlook invalid.
