- Aave (AAVE) price drops 7.6% but remains 131% above July lows.
- Significant CEX outflows indicate strong investor confidence in AAVE’s long-term growth potential.
- AAVE breaks resistance at $154.21, with bullish momentum aimed at reaching $200.
On Tuesday, the price of Aave (AAVE) slid by 7.6% to $164.5 after hitting $178 earlier in the week. Despite this pullback, AAVE remains 131% above its July low.
Data shows that investors are moving their tokens off centralized exchanges (CEX), which is a good sign for long-term holders. Over $6.35 million in AAVE tokens left CEXs this week as AAVE flipped a key resistance level.
Investors Are Bullish Amid Rising CEX Outflows
AAVE has been one of the top-performing DeFi tokens recently. According to Nansen, the token saw a 4.96x increase in CEX outflows, with $6.35 million worth of AAVE moving into self-custody.
This suggests that holders expect long-term growth. Additionally, the ten biggest accounts purchased AAVE tokens worth $8.4 million. This exceeded sales of $7.8 million, indicating that investors are still confident in AAVE’s potential. Many are betting on a strong DeFi comeback, with AAVE leading the charge.
AAVE Breaks Resistance, Sets Its Sights on $200
Technically, AAVE flipped a key resistance level at $154.21, its high from March this year. The token remains in an uptrend, staying above the trendline that’s been in place since June 2022. Also, AAVE broke above the 25-week moving average, and the RSI is nearing overbought levels.
With this momentum, AAVE could continue its bull run. Buyers now have their eyes on the psychological $200 mark. CoinGlass data shows that open interest in AAVE has remained high, with daily totals above $87 million since mid-August.
Meanwhile, AAVE’s fundamentals remain strong. The platform has accumulated $12.53 billion in assets, with $8.09 billion borrowed through its services. In the last year alone, AAVE has collected $260 million in fees. This makes it one of the most profitable platforms in decentralized finance today.
