The price of AAVE rebounded for the second day in a row, erasing some of last week's losses, as smart money investors bought in and exchange balances fell.

ghost (ghost), the largest lending protocol in the cryptocurrency industry, rose to $341 on Monday, December 23, representing a 25% increase from its low last week. This recovery pushed the coin's market capitalization to over $5 billion.

The rise was not driven by any specific AAVE-related news but appears to be linked to the broader recovery Decentralized finance Symbols. DAO characteristic curve (CRV(by 10%, while radium rose)opinion) by 5%. Other leading DeFi tokens, such as Chainlink and Lido DAO, have also seen upward momentum.

AAVE's performance was further supported by its strong fundamentals. It remains the second-largest player in the DeFi industry, managing more than $19.6 billion in assets across chains such as Ethereum, Polygon, and Arbitrum.

AAVE token exchange balances have continued to decline, indicating that investors are holding rather than selling. The total tokens held on exchanges fell to 5.51 million, a 2.27% decrease from the previous week. Lower exchange balances are often viewed positively in the cryptocurrency market.

Nansen data also highlighted increased activity among smart money investors, with the number of smart money AAVE holders rising to nearly 50, compared to less than 30 in June. Smart money balances now exceed 430,000 tokens, compared to a year-to-date low of less than 340,000 tokens. This accumulation is generally considered a bullish sign for the cryptocurrency.

Donald Trump's company World Liberty Financial has become a major buyer of the AAVE token. She owns more 6000 coins It is valued at more than $2 million, making it the fourth largest part of its portfolio after Ethereum, Bitcoin, and USDC. The company also wants to build it DeFi network on top of the AAVE platform.

Technical technicals for AAVE price indicate further upside

Technicians indicate that the AAVE token has more upside in the next few days. The coin formed a hammer candlestick chart pattern on December 20 as the cryptocurrency declined. A hammer is formed during a downtrend and consists of a long lower shadow and a small body.

Additionally, AAVE has found support at its 50-day moving average and is approaching the weak, stop, and reversal level of the Murrey Math Lines. This suggests that the symbol may continue higher, with the next important resistance level to watch being $375.