AAVE, the native token of decentralized lending platform Aave, has attracted the attention of huge users as the price of the token has increased by more than 30% in the past week.

As of the time of this article’s publication, Aave is the 44th-largest cryptocurrency, up from 47th on August 20. The coin has a market cap of over $2 billion and is up more than 3% in the past 24 hours.

According to price data from crypto.news, AAVE is trading at $137.64, down from its weekly high of $142.16 set on August 22. The token is up 30.9% over the past week and over 47.7% over the past 30 days. Despite the recent rebound, the token is still down 79.2% from its all-time high of $661.69 set in May 2021.

The surge is largely due to whale activity recorded over the past week, most recently on August 22, when Lookonchain data showed that a single whale snapped up around $10.4 million worth of AAVE using 4,000 staked Ethereum (ETH) in less than 24 hours.

This massive purchase follows significant whale activity recorded on August 20, with two whales purchasing $3.92 million worth of AAVE, with another large investor joining the bandwagon the next day, adding to the $6.65 million was invested in the token.

According to data from IntoTheBlock, whales holding more than 1% of Aave’s circulating supply control 59.43% of AAVE’s total supply. The high concentration of whales suggests that the token’s price is influenced by these large holders.

Further data shows that both AAVE inflows and outflows from large holders have increased significantly, with inflows increasing by 90.37% and outflows increasing by 95.79% over the past seven days.

However, AAVE’s net flows among large holders jumped 364.73% during the same period, indicating that buying interest is currently dominant, driving the upward momentum of AAVE’s price.

AAVE is currently in overbought territory

On the 4-hour candlestick chart of AAVE/USDT, its relative strength index is 73.93, indicating that the coin is currently overbought. However, the Moving Average Convergence Divergence suggests that bullish momentum is still in play as the MACD line remains above the signal line with positive bars.

This could mean that while AAVE may be overbought, the upward momentum could continue for a while, driven by whale buying. However, overbought conditions often precede price corrections or consolidation phases, so traders may seek to take profits in the short term.