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.