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Naina

07/20 04:25

AAVE : Is the 3.79% drop in exchange reserves a bu

AAVE : Is the 3.79% drop in exchange reserves a bullish sign?

On-chain data revealed that AAVE’s Exchange Reserve in USD value has declined by 3.79%, and was sitting at $754.37 million, as of writing. 

This shift suggests a reduction in immediate sell-side pressure as investors move assets away from centralized exchanges. 

Historically, such outflows precede price appreciation, since available supply for liquidation shrinks. 

While this alone doesn’t confirm upward momentum, it reinforces the bullish setup provided by the technical indicators. 

Thus, the drop in exchange reserves aligns with the ongoing narrative of investor confidence and reduced short-term selling intent.1752985440010.png

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