AAVE price steady as whales buy, exchange supply plunges

The price of AAVE held steady above the 50-day moving average as its role in decentralized finance grew, whales accumulated, and exchange reserves plunged. Aave ( AAVE ) price was trading at $272 on Sunday, July 6. That’s up by 140% from its lowest level in April. This rebound has brought its market cap to $4.1 billion and its daily volume to over $250 million. On-chain metrics compiled by Nansen indicate that whales have continued to buy AAVE over the past few days. Whales have increased their holdings by 3.4% over the last 30 days to 198,535, a sign that they expect the trend to continue rising. More data from Santiment reveals that the supply of AAVE on exchanges has been in a free fall this month. It has dropped to 2.9 million, its lowest level since February 2021. It has been crashing since peaking at 4.53 million in November 2023. AAVE balances on exchanges | Source: Santiment The falling AAVE balances on exchanges is a sign that investors continue moving their tokens to self-custody. It also signals that these investors expect the price to be robust over time. You might also like: Ethereum price stalls, but ongoing accumulation points to a surge The main bullish factor for Aave is that it is the biggest player in the decentralized finance industry. DeFi Llama data shows that the total value locked has increased by 7.8% over the last 30 days to exceed $26 billion. This growth has made Aave one of the most profitable players in the DeFi space. It has generated cumulative revenues of over $233 million and $3.3 million in the last 24 hours. AAVE price technical analysis AAVE price chart | Source: crypto.news The daily timeframe chart shows that the AAVE price bottomed at $114.65 in April and then embarked on a bull run, pushing it to $323 in May. AAVE then pulled back to a low of $213 in June and has now bounced back to $273. The coin has remained above the 50-day and 100-day Exponential Moving Averages, a sign that bulls are in control. It has also formed an inverse head-and-shoulders pattern, a popular bullish reversal sign. Therefore, the token is likely to experience a bullish breakout, with the initial target being $323, the highest level reached in May. A move above that level will signal further gains, potentially reaching the psychological point at $400, the highest level in 2024. The AAVE coin was created by Stani Kulechov, a Finnish entrepreneur who founded the project originally as ETHLend in 2017. In 2020, ETHLend — a decentralized peer-to-peer lending platform on Ethereum — was rebranded as Aave (which means “ghost” in Finnish). The AAVE token was introduced as part of the protocol’s transition to a more robust decentralized finance (DeFi) platform for borrowing and lending crypto assets. Kulechov is also recognized for his contributions to decentralized social networks, including Lens Protocol. Read more: XLM price at risk as Stellar Lumens’ funding rate crashes

Source: crypto.news