AAVE Price Retracts on Increased Exchange Outflows: What’s Next?

The price of AAVE experienced a pullback on September 24 due to a rise in centralized exchange outflows, signaling a potential shift in investor behavior.

CEX Outflows Surge, Bulls Remain Optimistic

According to on-chain data analysis from Nansen, AAVE saw a significant increase in centralized exchange outflows, indicating a trend of investors moving their tokens to self-custody for long-term holding. This shift is seen as a positive sign for the cryptocurrency.

Moreover, the top ten largest accounts accumulated AAVE tokens worth over $8.4 million, surpassing sales worth over $7.8 million, suggesting continued bullish sentiment among investors hoping for a resurgence in DeFi.

AAVE’s Strong Fundamentals

Data from DeFi Llama reveals that AAVE has amassed assets totaling over $12.53 billion, with a significant portion in its V3 version. The platform has facilitated over $8.09 billion in borrowing and generated $260 million in fees over the past year, solidifying its position as a profitable DeFi ecosystem.

Additionally, AAVE’s future interest remains high, as reflected in CoinGlass data showing consistent daily open interest levels above $87 million since mid-August, reaching a peak of $214 million on September 11.

Technical Analysis and Price Speculation

On the weekly chart, AAVE has sustained a bullish trend, surpassing key resistance at $154.21 and breaching the 25-week moving average. The Relative Strength Index hints at potential overbought conditions, setting the stage for buyers to target the $200 psychological level.