Whales continue to accumulate Aave as prices reach overbought levels

Whales have been accumulating Aave as its price began to rise over the past week, although the token has now entered the overbought zone.

According to data provided by IntoTheBlock, whales holding over 1% of Aave’s (AAVE) circulating supply have accumulated a total of 9.74 million tokens, representing over 60% of the total AAVE supply.

The inflow from large AAVE holders has also increased in the last 24 hours, reaching 291,000 tokens according to ITB data. This shows increased interest from whales as the AAVE price recorded an impressive 44% increase in the last 30 days.

The data also shows an increased outflow of large Aave holders, which has reached 271,000. However, due to the rising price, the movement cannot be attributed to selling pressure from whales. Instead, the indicator could show increased withdrawals from exchanges.

According to Santiment, the number of whale transactions involving AAVE valued at least $100,000 has increased more than six-fold since August 18, reaching 153 individual transactions in the last 24 hours alone.

As AAVE price and whale accumulation rise, its Relative Strength Index hits the 70 mark, according to Santiment data. The indicator shows that the asset is currently overbought and short-term profit-taking from both small and large token holders could be natural.

AAVE is up 7% in the last 24 hours and is trading at $137.2 at the time of writing. Despite the current price rally, AAVE is still 79% below its all-time high of $666 in May 2021. The native token of the Aave protocol is currently the 44th largest cryptocurrency with a market cap of over $2 billion.