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AAVE Surges Over 30% Last Week as Whale Activity Intensifies

Posted on by angelo
AAVE Surges Over 30% Last Week as Whale Activity Intensifies

AAVE, the native token of decentralized lending platform Aave, has caught the attention of whales as the token’s price surged by more than 30% in the past week.

At the time of publication, Aave (AAVE) was the 44th largest cryptocurrency, up from 47th position on August 20. The token’s market cap has surpassed $2 billion and is up more than 3% in the last 24 hours.

According to price data from crypto.news, AAVE was trading at $137.64, down from its weekly high of $142.16 reached on Aug. 22. The token is up 30.9% over the past week and over 47.7% over the past 30 days. Despite the recent rally, the token is still down 79.2% from its all-time high of $661.69, reached in May 2021.

This surge was primarily fueled by the intense whale activity recorded over the past week. Most recently, on August 22, Lookonchain data revealed that a whale scooped up approximately $10.4 million worth of AAVE for 4,000 staked Ethereum (ETH) in less than 24 hours.

The massive buying was preceded by significant whale activity recorded on August 20, with two whales purchasing $3.92 million worth of AAVE, with another large investor joining the trend the next day with a $6.65 million investment in the token.

A look at IntoTheBlock’s data shows that whales holding more than 1% of Aave’s circulating supply controlled 59.43% of AAVE’s total supply. The high concentration of whales suggests that the token’s price is influenced by these large holders.

AAVE Surges Over 30% Last Week as Whale Activity Increases - 1
AAVE concentration chart | Source: IntoTheBlock

Other data shows a significant increase in AAVE inflows and outflows among large holders, with inflows increasing by 90.37% and outflows increasing by 95.79% over the last seven days.

However, the net flow of AAVE among large holders surged by 364.73% during the same period, indicating that buying interest is currently prevailing, contributing to the upward momentum of AAVE price.

AAVE currently in overbought zone

AAVE Surges Over 30% Last Week as Whale Activity Increases - 2
AAVE Price, MACD and RSI Chart – August 22 | Source: crypto.news

On the 4-hour candlestick chart of AAVE/USDT, its Relative Strength Index was at 73.93, suggesting that the token is currently overbought. The Moving Average Convergence Divergence, however, shows that bullish momentum is still in play, as the MACD line remains above the signal line with positive histogram bars.

This likely means that while AAVE may be overbought, the bullish momentum could continue for a bit longer, fueled by whale buying. However, overbought conditions often precede a price correction or consolidation phase, so traders may be looking to take profits in the short term.