The ongoing Aave price surge could be nearing its end as a risky chart pattern forms and whale accumulation stalls.
Summary
- Aave price has jumped by 185% from its lowest level in April.
- It has formed a double-top pattern on the weekly chart.
- Smart money and whale activity has waned in the past two weeks.
Aave (AAVE) token peaked at $326 during the weekend, up by over 175% from its lowest level in April this year. It is hovering near its December 2024 highs, giving it a market capitalization of nearly $5 billion.
Aave price has been in a strong bull run in the past few months as its network growth has accelerated. DeFiLlama data shows that the total value locked in its ecosystem jumped to a record high of $41 billion, almost double what it started the year at.
According to its website, the amount of liquidity supplied on its platform has jumped to over $63 billion, making it bigger than many American banks.
This growth has led to a big jump in its monthly fees. According to TokenTerminal, it has made $80 million in fees, up by 7.2% from July’s $74.7 million and June’s $50 million.
The rising fee collections have also pushed up the value of its treasury. Aave now has $235 million in assets, up from $176 million in April.
While the network is doing well, there are signs that the price will start to lose momentum. Nansen data shows that whales hold 183,116 AAVE tokens worth over $59 million. While holdings have jumped by 15% in the last 30 days, they have not bought any since Aug. 14.
Smart money investors, who are known for buying low and selling high, have reduced their holdings to 293,000, down from this month’s high of 294,000. That is a sign that they expect the AAVE price to pull back.
Additionally, the token supply on exchanges has risen to 5.42 million from this month’s low of 5.4 million, a sign that investors have started selling their tokens.
AAVE price technical analysis
The weekly-timeframe chart shows that the price of AAVE has been in an uptrend in the past few weeks. It jumped to a high of $377, up from the April low of $113.
AAVE has remained above the 50-week and 100-week Exponential Moving Averages, which is a bullish sign. However, there is a risk that it has formed a double-top pattern whose neckline is at $113.8.
Therefore, the token will likely have a pullback as long as it remains below the double-top point at $377. Such a move will see it drop to the 100-day moving average at $190.
