AAVE hit a three-year high, rising to $397 on Monday. Technical indicators suggest that DeFi tokens have the potential for further gains. 96% of AAVE holders are currently profitable, with traders making massive profits from their holdings last week. AAVE's eyes gather above the psychological level of $500.
AAVE, one of the largest DeFi tokens, hit a three-year high of $397 early Monday morning. AAVE’s market cap has surpassed $5.723 billion as the token has appreciated nearly 130% in the past 30 days.
On-chain indicators show that AAVE activity is rising as traders take profits. However, AAVE’s price rise was not deterred by profit-taking, with the DeFi token gaining nearly 4% on the day.
AAVE reaches 3-year peak, target reaches $500
AAVE price soared to a local high of $397 on December 16, the highest since 2021. Since then, the DeFi token has observed a pullback and is trading at $379.82 at the time of writing. Technical indicators on the daily price chart support the bullish thesis for DeFi tokens.
Upward sloping green histogram bars for the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) support AAVE's bullish theory.
The token could next target the psychologically important $500 level, with the $509.31 price level at 141.4 of the rally from the November 21st low of $151.86 to the December 16th high of $397. % Fibonacci retracement level.
AAVE/USDT daily price chart
96% of AAVE holders are profitable
According to data from cryptocurrency intelligence tracker IntoTheBlock, 96.03% of wallet addresses holding AAVE are currently profitable. Profit-taking spiked throughout the past week, peaking on Dec. 12, as AAVE traders profited from their holdings, according to Santiment data.
Money flowing in and out of the world | Source: Into the Block
AAVE noted a significant spike in activity coinciding with profit taking, according to Santimento data. Although this has not affected the price of DeFi tokens, traders should keep an eye out for a correction if they dump AAVE and take profits.
AAVE Active Addresses and Network Realized P&L | Source: Santiment
At the time of writing, AAVE is trading at $379.82.
