After hitting a recent low of $153 several days ago, Aave [AAVE] has seen a significant increase, reaching a peak of $184.
Currently, Aave is trading at $181, representing a 3.79% increase over the last 24 hours. Moreover, the altcoin has shown gains over the weekly and monthly charts, rising by 8.25% and 24.52% respectively.
Despite this price surge, Aave is still trading around 72.89% below its all-time high (ATH) of $666.
As such, there is speculation in the market about whether this price recovery is sustainable or merely a temporary correction.
Evaluating Aave’s Performance
According to the analysis by CryptoCrypto, Aave is currently on a strong upward trajectory, driven by increasing buying pressure. The altcoin has recently experienced a bullish crossover on the Stoch RSI.
Over the last 48 hours, the Stoch has settled at 41, indicating that buyers are dominating the market, hinting at potential price hikes in the near term.
The bullish sentiment is further confirmed by the Relative Strength Index (RSI).
With the RSI sitting at 58 over the past day and flipping its Moving Average (MA) at 54, there is validation of the uptrend and the presence of substantial buying pressure.
Additionally, the strength of the ongoing uptrend is corroborated by the Directional Movement Index (DMI), as the +DMI stands at 23, remaining above the -DMI. This signals a robust upward momentum and a weakening downtrend.
An analysis of Aave investors’ behavior reveals a high level of optimism, demonstrated by a notable outflow from exchanges.
IntoTheBlock data shows a significant weekly surge in volume outflow to 47.95K, indicating investors’ confidence as they transfer tokens from exchanges to private wallets and cold storage.
The decreasing supply-exchange ratio further supports this trend. According to CryptoQuant, the supply exchange ratio has declined in the past 48 hours, hitting a monthly low.
These trends imply that more Aave is being withdrawn from exchanges than being deposited, reflecting strong investor confidence in the asset.
Importantly, the price surge seems to be grounded in solid on-chain activities rather than mere speculation.
Aave’s active addresses have surged in recent days, reaching a 2-week high of 2.6K. This uptick indicates growing demand, adoption, and engagement, all contributing to the upward momentum in price.