AAVE has been hovering within a long-term resistance line after concluding July on a bullish trajectory. Its price has been treading near the same level for the last four days, seemingly unsure of the next move.
A breakout above the current level means the next resistance level will be right above the $120 price zone. However, the current resistance has been holding up quite well, hence a bearish retracement is still on the cards.Although AAVE has been hovering near the $100 price level for the last few days, the Money low indicator reveals significant outflows for the past two weeks.
On the other hand, the outflows do not explain the lack of downward pressure. A closer look at some of its on-chain metrics may provide more clarity.AAVE’s MVRV ratio peaked at 38.58% on 18 July, but it has since then dropped to the press time level at 14.5%. AAVE’s exchange inflow and outflow levels have kicked off August with relatively normal volumes, although outflows outweighed inflows.Source: Glassnode