AAVE Market Update

Overview

• AAVE’s Exchange Netflow surged by +583.2% in three months, thanks to increased investor deposits.
• AAVE’s Open Interest climbed from 270K to 282K coins, highlighting increased speculative activity.

AAVE [AAVE] indicated a potential breakout after a consolidation period, observed on Binance’s 1-hour price chart. The price decreased from $199.36 to $194.25, reflecting a 0.83% drop.

Volume Profile data showed strong support at $196.00, highlighting significant activity that indicates price acceptance. The latest candle tested the $194.25 support level, reinforcing its importance.

The Relative Strength Index (RSI) registered at 55.06 on the 14 SMA, suggesting neutral momentum. A drop below 50 could indicate bearish pressure, while a rise above $199.36 could propel AAVE toward $210.00 resistance.

If the price cannot maintain above $194.25, it may decline to $188.00, mirroring previous patterns.

AAVE Investor Activity and Its Impact

AAVE’s Exchange Netflow increased dramatically by +583.2% over three months, reflecting heightened investor deposits from December 2024 to March 2025.

Netflows reached a peak of +98.78K AAVE, suggesting intensified accumulation. A 7-day netflow change recorded +4.54K AAVE, while the 30-day change hit +40.4K AAVE.

This surge reflects growing investor confidence that may lead to upward price movement. If the netflow trend continues, AAVE could approach the $220.00 resistance.

Conversely, a reverse below -49.38K AAVE might lead to a price drop to $188.00 support, reminiscent of early February netflow trends that triggered notable price fluctuations.

Speculative Interest Rises as Market Volatility Increases

AAVE’s Open Interest grew from 270K to 282K coins, signaling heightened speculative activity. This sharp ascent to 282K, followed by a slight drop to 277.39K, indicated market volatility.

Increasing Open Interest typically signifies bullish sentiment, hinting at possible upward movement toward the $210.00 resistance level.

Should the Open Interest decline below 270K, traders may foresee a sell-off, driving AAVE toward the $188.00 support region.

Are Bulls or Bears in Control?

AAVE’s Long/Short Ratio on Binance indicated shifts in market sentiment. The Taker Buy/Sell Volume ratio varied between 0.77 and 1.25, with long positions dominating at 60% and shorts at 40%.

The Accounts Long/Short ratio mirrored this trend, with long positions peaking at 55% and shorts at 45%. This imbalance points to strong bullish momentum, supporting a possible rally past $199.36.

If short positions exceed 60%, selling pressure could mount, placing AAVE around the $188.00 support level.

Conclusion

In summary, AAVE’s market indicators suggest a critical moment, indicating the potential for bullish momentum or another decline.
Price action identifies key levels at $199.36 resistance and $194.25 support, while the significant rise in Exchange Netflow reflects growing investor confidence.