crypto.news
$AAVE price continued rising on Saturday, reaching its highest level since March 6 this year as exchange balances fell and total value locked in its network fell.
$AAVE ($AAVE) rose to $221.91, up by 95% from its lowest level on April 7, bringing its market cap to over $3.3 billion.
CoinGlass data shows that investors continue accumulating more $AAVE tokens, especially after Ethereum (ETH) made a strong breakout and tested the key resistance point at $2,400 for the first time since February.
$AAVE balances on exchanges dropped to 4.76 million, down from 4.87 million a week ago. This decline brought the total supply on exchanges to 29.74%. Falling exchange balances is a sign that holders are not selling, which is a positive thing for a coin.
$AAVE price also jumped as it solidified its position as the biggest player in the decentralized finance industry. DeFi Llama data shows that its total value locked rose by 35% in the last 30 days to $24.2 billion, making it much bigger than Lido (LDO), which has $21.6 billion in assets.
This growth has made $AAVE one of the most profitable players in the crypto market, as its year-to-date fees jumped to $224 million.
$AAVE is a decentralized ‘banking’ platform that enables users to earn interest from their idle assets. This interest comes from its lending operations, enabling users to borrow at competitive rates.
$AAVE price technical analysis
The daily chart shows that $AAVE price bottomed at $113.50 on April 7, bouncing back to its highest level since March 6. It has jumped above the 50-day Exponential Moving Average and the crucial psychological point at $1,000.
The Relative Strength Index has moved to the overbought level at 75, while the MACD indicator has crossed the zero line.
This rebound happened after it formed a falling wedge pattern between December and April. Therefore, the coin will likely continue rising as bulls target the key resistance level at $400, its highest point in December.
Such a move would signal an 83% surge from the current level. A drop below the support at $170 will invalidate the bullish outlook.