AAVE Surges to New heights, Supported by Strong Fundamentals and Technicals
AAVE is on a roll, hitting it’s highest point since February 2. The token reached $281 on Tuesday, continuing a rally that started on April 7 when it was at $114.15.
Investor interest is driving this surge. Fewer AAVE tokens are sitting on exchanges now. Santiment data shows that exchange balances have dropped to 3.17 million, the lowest since February 2021. This decline suggests investors are holding onto their tokens rather than selling.
Looking at AAVE’s fundamentals, the total value locked in the protocol has hit a record $26.42 billion, up 30% in the last 30 days. This shows growing network activity. AAVE’s revenue is also stable, with $33.8 million in fees this month, slightly higher than last month.
Staking activity is up too. the staking market cap has reached $800 million, up from $454 million last month.AAVE’s stablecoin, GHO, is also in demand, with a market cap of $265 million.
Technically, AAVE is in a strong bull run. the 50-day exponential moving average has crossed above the 200-day MA, forming a golden cross. The average Directional Index is at 42, indicating a strong uptrend. AAVE has also broken above the 38.2% Fibonacci retracement level, suggesting it could reach $400.
