AAVE's price is witnessing a rebound for the second consecutive day, erasing some of last week's losses, driven by smart money buying and decreasing exchange balances.
AAVE's Rise and DeFi Influence
AAVE, the largest lending protocol in the crypto industry, climbed to $341 on Monday, Dec. 23, marking a 25% increase from its lowest level last week. This recovery pushed the token’s market cap to over $5 billion. It was driven by the broader rebound in DeFi tokens, like Curve DAO Token and Raydium.
Smart Investors Active and Exchange Balances Decline
Exchange balances of AAVE tokens continued to decline, indicating that investors prefer holding over selling. The total tokens held on exchanges fell to 5.51 million. Nansen data highlighted increased activity among smart money investors, with their numbers rising from fewer than 30 in June to nearly 50 now.
Technical Analysis: Growth Prospects
Technical analysis suggests that AAVE has more upside potential. The coin formed a hammer candlestick chart pattern and found support at its 50-day moving average, indicating a possible continuation of the rise.
AAVE is slowly regaining its position, attracting smart investors. Technical indicators also suggest potential further growth for the token.
