An Ethereum (ETH)-based native token for a decentralized finance (DeFi) project is flashing a couple of bullish divergences, according to the crypto analytics firm Santiment.
Aave (AAVE), a DeFi lending protocol, is trading at $93.89 at time of writing and is up more than 2.3% in the past 24 hours.
Santiment notes that the asset’s top 150 non-exchange wallets now hold 9.61 million AAVE, a five-month high.
The analytics firm also says AAVE’s Relative Strength Index (RSI) has dropped below 40, which has historically been a “bounce zone” for the asset.
The RSI is a widely used momentum indicator that aims to determine if an asset is overbought or oversold. The indicator scales from 0 to 100, and a reading of below 30 is typically considered bullish while a reading of over 70 is typically considered to be a bearish sign.
In terms of other crypto assets, Santiment notes that Ethereum competitor Cardano (ADA) noticed a sudden loss of small wallets back in mid-November.
“A drop of addresses this size or smaller often indicates capitulation, and a potential price turning point. ADA is +65% since.”
ADA is trading at $0.635 at time of writing. The eighth-ranked crypto asset by market cap is up nearly 8% in the past 24 hours.
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Author: Daily Hodl Staff
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