The price of Aave token peaked at $326, up by over 175% from its lowest level in April. However, the formation of a double-top pattern raises concerns about potential price corrections.
Aave Price Growth
Aave token reached a peak of $326 during the weekend, representing an increase of 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. According to DeFiLlama, the total value locked in the Aave ecosystem has jumped to a record high of $41 billion, almost double what it started the year at.
Whale Activity Insights
Despite the network's success, there are signs of a potential loss of price momentum. Nansen data shows that whales hold 183,116 AAVE tokens worth over $59 million. While their holdings have increased by 15% in the last 30 days, there have been no purchases since August 14. Smart money investors have also reduced their holdings to 293,000 from a high of 294,000 this month, which may indicate an expectation of a price pullback.
Technical Analysis of Aave
The weekly timeframe chart for AAVE shows that the price has been in a strong uptrend, reaching a high of $377 from its April low of $113. AAVE remains above the 50-week and 100-week Exponential Moving Averages, which is a bullish sign. However, there is a risk of forming a double-top pattern, with a neckline at $113.8. If the price remains below this level, a pullback to the 100-day moving average at $190 could be expected.
The current dynamics in the Aave market warrant attention. Despite significant growth, potential signals of decline raise questions about the future pricing of the token.
