AAVE price has experienced a significant rally, climbing for eight consecutive days and reaching its highest level since June 6th. The token has surged by over 45% from its lowest point this month.

The recent rebound in the crypto market has contributed to the positive sentiment surrounding AAVE. Notably, Bitcoin has traded above $62,000 for the first time since July 1st, boosting optimism for many altcoins. Additionally, AAVE’s rise can be attributed to increased whale activity within its network.

According to a report, a whale recently acquired AAVE tokens worth $3 million. This individual’s address holds over 142,000 tokens, valued at more than $14 million.

A whale/institution bought $AAVE and $UNI again today. He deposited 4M $USDC to Kraken, then withdrew 35,983 $AAVE ($3M) and 123,183 $UNI ($1M) from Kraken. He currently holds 142,296 $AAVE ($12.1M) and 1.43M $UNI ($11.6M).

Meanwhile, ecosystem data indicates that Aave is performing well. The network has over $12 billion locked in its ecosystem, with $7.88 billion being borrowed, according to recent data.

Data also shows that AAVE is among the most profitable networks in the blockchain industry. Its total fees this year amount to $196 million, making it the seventh most profitable network after Ethereum, Tron, Bitcoin, Lido Finance, Uniswap, and Solana.

Aave generates revenue through various channels, including interest rates charged within its ecosystem, protocol fees, and liquidation fees. Flash loans also contribute to its earnings.

The lending industry has become highly competitive, with major players like Compound, Maker, Morpho, and Venus vying for market share.

AAVE Price Analysis

The AAVE price rally could moderate soon, as technical indicators suggest that the token is nearing an overbought state.

The Relative Strength Index (RSI), a popular oscillator, has risen to 64, approaching the overbought threshold of 70. This indicator measures the speed and change of price movements of an asset.

Similarly, the ultimate oscillator, which combines short, intermediate, and long-term price movements, is nearing the overbought point at 70. The stochastic oscillator’s two lines have already reached the overbought level.

In theory, an asset typically retreats when it reaches an overbought level. However, an overbought asset can also indicate strong bullish momentum. Therefore, AAVE may continue its upward trend if Bitcoin maintains its bull run.

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