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AAVE, the native token for the decentralized lending platform Aave, has seen significant interest from large investors, often referred to as whales, as the token’s price surged over 30% in the past week.
As of now, Aave ranks as the 44th largest cryptocurrency, climbing from the 47th position it held on August 20. The token’s market capitalization has surpassed $2 billion, showing a rise of more than 3% in the past 24 hours.
According to recent price data, AAVE is trading at $137.64, slightly down from its weekly high of $142.16 reached on August 22. The token has gained 30.9% over the past week and over 47.7% in the last 30 days. Despite this recent rally, AAVE is still down 79.2% from its all-time high of $661.69, achieved in May 2021.
Whale Activity Driving the Surge
The recent surge has been largely driven by intense whale activity. On August 22, data revealed that a whale purchased approximately $10.4 million worth of AAVE in exchange for 4,000 staked Ethereum (ETH) within 24 hours.
This whale spent 4,000 stETH ($10.4M) to buy 77,270 AAVE at $135 in just one day!
Prior to this, on August 20, two whales acquired $3.92 million worth of AAVE, with another significant investor joining the trend on the following day with a $6.65 million investment.
Whale Holdings and Market Influence
Data indicates that whales holding over 1% of Aave’s circulating supply control 59.43% of AAVE’s total supply. This high concentration suggests that the token’s price is significantly influenced by these large holders.
Further data shows a notable increase in both the inflows and outflows of AAVE among large holders, with inflows rising by 90.37% and outflows by 95.79% over the last seven days. The net flow of AAVE among large holders has jumped 364.73% during the same period, indicating that buying interest is currently prevailing, contributing to the upward momentum in AAVE’s price.
Technical Analysis
On the 4-hour candlestick chart of AAVE/USDT, the Relative Strength Index (RSI) stands at 73.93, suggesting that the token is currently overbought. However, the Moving Average Convergence Divergence (MACD) indicates that bullish momentum is still present, as the MACD line remains above the signal line with positive histogram bars.
This likely means that while AAVE may be overbought, the upward momentum could persist a bit longer, driven by whale buying. However, overbought conditions often precede a price correction or consolidation phase, so traders might consider taking some profits in the short term.
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