Despite market correction, AAVE is being actively accumulated by large holders
According to data provided by Saniment On-chain analytics feed, decentralized finance protocol Aave — which allows people to lend and borrow cryptocurrencies — surged 26% as investors and whales racked up 70,000 tokens.
AAVE Accumulation
AAVE’s price movement was similar to the performance of digital assets like Luna and Rune, as they have recently rallied despite the tough conditions of the downtrend market. As data from Santiment suggests, the primary driver of the sudden growth was the accumulation of addresses that hold from $152,000 to $1.52 million.
The aforementioned addresses added $10.7 million AAVE over the past two months, showing increased demand from retail investors.
AAVE technical analysis
According to various technical indicators like the Relative Strength Index and Exponential Moving Average, the asset is currently in the process of a trend shift as the price of AAVE broke through the 50-day moving average.
As for the RSI, which often reflects the current state of the asset, it evolves in the “bullish” zone above the value of 50. But while approaching 60, the indicator is still far from the zone “overbought”, which shows that AAVE still has some room for growth if the purchasing power remains in the market.
Previously known as ETHLend, Aave allows users to lend and borrow cryptocurrencies and earn interest for depositing digital assets in liquidity pools. For providing liquidity to trading pairs and swaps, users receive rewards.
The platform’s popularity grew after the explosive growth of the DeFi industry as more users redistributed their funds towards more stable options like liquidity farming and staking.
