AAVE continues its sturdy rally, reaching its highest degree since Feb. 2 as each fundamentals and technicals align.
AAVE (AAVE) surged to $281 on Tuesday, extending a rally that started on April 7 when the token bottomed at $114.15.
The uptrend has been supported by rising investor demand, mirrored in a pointy drop in alternate balances. Based on Santiment, the variety of AAVE tokens held on centralized exchanges has declined to three.17 million, down from 4.53 million in Nov. 2023. That is the bottom alternate steadiness since Feb. 2021.
Falling provide on exchanges is often interpreted as a bullish sign, indicating that traders are opting to carry fairly than promote. In distinction, rising alternate provide usually suggests rising promote stress.
A more in-depth take a look at AAVE’s fundamentals helps clarify the bullish momentum. The overall worth locked within the protocol has reached a file $26.42 billion—up greater than 30% over the previous 30 days, signaling a pointy improve in community exercise.
Protocol revenues have additionally stabilized. AAVE generated $33.8 million in charges this month, barely increased than final month’s $33.3 million. This constant income stream positions AAVE among the many most worthwhile platforms in decentralized finance.
AAVE has additionally seen increased staking inflows, with the staking market cap hitting $800 million, from $454 million final month. In ETH phrases, the staking quantity has risen from final 12 months’s low of 84k to 300k right now.
GHO, AAVE’s native stablecoin, has additionally skilled surging demand, with its market cap hitting an all-time excessive of $265 million.
AAVE worth technical evaluation
The every day chart reveals that the AAVE token worth has been in a robust bull run up to now two months. It has even shaped a golden cross sample because the 50-day exponential shifting common has moved above the 200 MA.
The Common Directional Index has surged to 42, an indication that the uptrend is gaining momentum. ADX is likely one of the hottest indicators for measuring the power of a pattern.
AAVE has additionally damaged above the 38.2% Fibonacci retracement degree from the earlier cycle. This breakout will increase the chance of a continuation increased, with the following key goal at $400, representing a forty five% acquire from present ranges.
