According to data provided by the Santiment on-chain analytics feed, Aave saw a 26% price increase as investors and whales hoarded 70,000 AAVE coins.
AAVE's price action was similar to the performance of digital assets like Luna and Rune. Despite the challenging conditions of the downtrend market, these coins were in an uptrend. As data from Santiment shows, the primary driver of the spike was the backlog of addresses from $152,000 to $1.52 million. These addresses have accumulated 10.7 million AAVE in the last two months. The tweet shared by Santiment is as follows:
"#Aave is up 9% in the last 24 hours and 26% in the last week. A key aspect that has worked in favor of the 54th largest crypto-asset is that notable sharks and whales have collectively amassed $70,000 AAVE in the past 2 months, worth $10.7M."
According to various technical indicators such as the Relative Strength Index and the Exponential Moving Average, the asset is currently in the process of a trend shift as the AAVE price broke the 50-day moving average.
As for the RSI, it is moving above 50, i.e. in the "bullish" zone. RSI usually reflects the current state of the asset. But as the RSI approaches 60, the indicator is still far from the "overbought" zone, suggesting that AAVE still has room for growth if the purchasing power remains in the market.
Formerly known as ETHLend, Aave allows users to lend and borrow cryptocurrencies and earn interest for investing digital assets in liquidity pools. Users receive rewards for providing liquidity to trading pairs and swaps. The platform's popularity has soared after the explosive growth of the DeFi industry as more users redistribute their funds to more stable options like liquidity farming and staking.