After the outcome of the U.S. election, a noticeable drop in Aave’s [AAVE] exchange outflows was observed, signaling investor caution regarding potential regulatory changes.
However, in the past three days, there has been a steady uptrend in AAVE exchange outflows, indicating heightened activity and a potential boost in market confidence among participants.
The rise in exchange outflows may also suggest that traders are capitalizing on short-term profits while positioning themselves strategically for future opportunities.
Source: Cryptoquant
Bulls Asserting Control Gradually
Analysis of the Coinglass long/short ratio data by CryptoCrypto reveals fluctuating trends in AAVE’s market. While there was significant uncertainty between long and short positions among traders previously, there is now a noticeable inclination towards long positions.
This shift signals the onset of optimism in the market, with traders anticipating a potential price surge post recent market corrections.
The gradual shift towards long positions reflects a collective expectation of a bullish price trend.
Source: Coinglass
Holders Positioning Strategically
The profitability of active addresses contributes another dimension to the evolving market landscape. As per data from IntoTheBlock, 64% of AAVE active addresses are currently in a profitable zone at the prevailing price.
This indicates the market’s strength, with a majority of participants reaping benefits from their positions despite recent market fluctuations and concerns.
Source: IntoTheBlock
Connecting the Dots
The relationship between the ascending exchange outflows, the shift towards long positions, and the robust profitability among active addresses corresponds to AAVE’s price movements. Initially impacted after the election, Aave’s market is now displaying signs of resurgence.
This confluence of factors suggests a cautious sense of optimism, with traders progressively embracing calculated risks. The resilience of the AAVE community and their strategic positioning hint at potentially exciting developments on the horizon.
AAVE’s price might experience a brief correction to the key support level of $177 before an expected uptrend to test higher resistance levels.
Source: Tradingview