AAVE Price Rebounds for Second Consecutive Day
The AAVE price rebounded for the second consecutive day, showing signs of recovery after last week’s losses. Smart money investors have been actively buying in, leading to a decline in exchange balances.
On Monday, December 23, AAVE (AAVE) saw a significant increase, reaching $341 and marking a 25% rise from its recent low. This surge pushed the token’s market cap above $5 billion.
While there was no specific news driving AAVE’s rally, it was part of a broader uptick in DeFi tokens. Curve DAO Token (CRV) and Raydium (RAY) also saw gains, along with other leading DeFi tokens like Chainlink and Lido DAO.
AAVE’s strong fundamentals have also contributed to its performance, as it remains a key player in the DeFi space, managing assets worth over $19.6 billion across various chains.
The decrease in AAVE tokens held on exchanges, now totaling 5.51 million, indicates that investors are choosing to hold rather than sell. This reduction in exchange balances is typically viewed positively in the crypto market.
Data from Nansen also shows a rise in smart money investors holding AAVE, with nearly 50 holders compared to less than 30 in June. The accumulation of smart money balances to over 430,000 tokens is seen as a bullish signal for the cryptocurrency.
World Liberty Financial, led by Donald Trump, has emerged as a significant buyer of AAVE tokens, holding over 6,000 coins valued at more than $2 million. The company aims to expand its DeFi network using AAVE’s platform.
Technical Analysis Points to Potential Upside
Technical analysis suggests that AAVE has room for further upside in the coming days. The token formed a hammer candlestick pattern on December 20, indicating a potential reversal from the downtrend. AAVE has also found support at its 50-day moving average and is approaching key resistance levels, with $375 as the next target to watch.