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The liquidity protocol’s token, AAVE, saw its price rise by 6% to $83. This uptick marks a seven-day price increase of 26%, with the daily trading volume recorded at $268.5 million. Open interest in the token also rose, reaching $110 million.
Crypto analyst Crypto Tony suggested a bullish trend could be on the horizon if AAVE can maintain a three-day closure above $75.00, a feat not achieved in the last 500 days. The Relative Strength Index (RSI) for AAVE also indicates a potential trend reversal.
Additionally, there has been a notable increase in exchange inflows over the past week, with $21 million flowing into exchanges and overall exchange reserves on the rise. However, the sustainability of this rally could be challenged by selling pressure, as net deposits on exchanges currently sit below the seven-day average.
The future of AAVE’s performance will largely depend on its ability to overcome this selling pressure and maintain its current upward trajectory.
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