The Rise of AAVE: Breaking Resistance Levels and Surge in CEX Outflows
In recent developments, the price of AAVE experienced a slight pullback on Tuesday, September 24, amidst a surge in centralized exchange outflows. Despite this temporary setback, AAVE, one of the standout performers in the DeFi space, is still trading at a significant premium, currently at $164.5. This marks a slight decline from its peak earlier in the week at $178, although it remains an impressive 131% above its lowest point in July.
The latest data from Nansen reveals that AAVE recorded centralized exchange outflows exceeding $6.35 million, showcasing a substantial 4.96x increase compared to recent averages. Typically, CEX outflows are considered positive indicators for a cryptocurrency, signifying a shift towards self-custody by investors, which often translates to long-term holding strategies.
Moreover, a deeper dive into the data shows that the top ten largest accounts accumulated AAVE tokens worth more than $8.4 million, surpassing sales worth over $7.8 million. This uptrend suggests a prevailing bullish sentiment among investors, with many anticipating a potential resurgence in the DeFi sector.
According to DeFi Llama, AAVE has amassed an impressive $12.53 billion in assets, with the majority residing in its V3 version. Of these assets, $8.09 billion has been borrowed, reflecting the platform’s robust lending activity. Over the past 12 months, AAVE has generated over $260 million in fees, solidifying its position as one of the most profitable DeFi platforms in the market.
Furthermore, AAVE’s future prospects continue to show promise, with daily open interest maintaining a strong upward trajectory. CoinGlass data indicates that daily open interest has consistently exceeded $87 million since August 15, peaking at $214 million on September 11. This surge in open interest underscores growing investor confidence in AAVE’s potential. Prior to this, the highest recorded open interest was $124 million on August 2, highlighting the platform’s sustained momentum.
Breaking Through Resistance: AAVE’s Ascendancy
Analyzing the weekly chart, it becomes evident that AAVE’s token has been on a robust bullish trend in recent weeks. Maintaining its position above the ascending trendline, which connects the lowest points dating back to June 2022, AAVE has demonstrated resilience and upward momentum.
Notably, AAVE has successfully breached a critical resistance level at $154.21, surpassing its previous high in March earlier this year. Additionally, the token has surged above the 25-week moving average, indicating a strong upward trajectory. The Relative Strength Index (RSI) is also approaching the overbought territory, underlining AAVE’s bullish momentum.
As AAVE continues to break barriers and surge past resistance levels, market participants are eyeing the psychological milestone of $200. With buyers showing strong interest and the platform’s fundamentals remaining robust, AAVE is poised for further gains in the foreseeable future.