AAVE flips key resistance as CEX outflows jump

The AAVE price pulled back on Tuesday, September 24, as on-chain data showed an increase in centralized exchange outflows.

One of the best-performing DeFi assets in recent times, AAVE (AAVE), has retreated from this week’s high of $178 to $164.5, but remains 131% above its July lows.

According to Nansen, AAVE had over $6.35 million in CEX outflows, up 4.96x from the recent average. CEX outflows are generally viewed as positive for a cryptocurrency, as they indicate investors are moving their tokens into their own custody, signaling long-term holding.

Additional data shows that the top ten accounts purchased over $8.4 million worth of AAVE tokens compared to over $7.8 million worth of sales, suggesting that more investors are optimistic about AAVE in hopes of a DeFi renaissance.

Meanwhile, according to DeFi Llama, AAVE has accumulated over $12.53 billion in assets, most of which are in its V3 version. $8.09 billion of these assets have been borrowed, and the network has collected over $260 million in fees over the past 12 months, making it one of the most profitable DeFi platforms.

AAVE’s future interest has also remained at a high level. Data from CoinGlass shows that daily open interest has remained above $87 million since August 15, reaching a peak of $214 million on September 11. Before that, the peak open interest was $124 million on August 2.

AAVE breaks above key resistance on AAVE price chart | Source: TradingView

On the weekly chart, the AAVE token has been in a strong uptrend for the past few weeks. It has remained above the ascending trendline connecting the lowest points since June 2022.

AAVE also broke through the critical resistance at $154.21, the swing high from March this year. It has climbed above the 25-week moving average, while the Relative Strength Index is approaching the overbought level.

Therefore, it is thought that AAVE may continue its bull run and buyers may target the psychological level of $200.