LunarCrush’s data indicate that the native token of the well-known ghost protocol Aave, AAVE, has seen an increase in social activity over the past week.
AAVE’s social engagements peaked at 1.89 million on October 12. This milestone was 2920% higher than the average for the previous seven days.
The price movement of a crypto asset is strongly correlated with its social activity. On October 12, AAVE’s social engagements reached a new high during the intraday trading session, but its price did not increase as much.
AAVE, why?
At the time of this writing, CoinMarketCap data indicate that AAVE was worth $67.38. Its price has decreased by 7% in the last 24 hours.
The bears destroyed the AAVE market on a daily chart. The token’s Moving Average Convergence Divergence (MACD) showed that a new bear run started on October 11.According to data from CoinMarketCap, the price of AAVE has since decreased by 9.5%.
The AAVE market has struggled with a decrease in investors’ liquidity over the past few days as the asset’s price continues to fall. At the time of writing, key performance indicators were located in downtrends, where they have been since October 5.
At the time of writing, AAVE’s Relative Strength Index was 33.35 below the 50-neutral spot.As of this writing, the Money Flow Index was at 31.43, moving into oversold territory.
Its Chaikin Money Flow Index (CMF) remained below the center line (red) at -0.12, also indicating increased AAVE selloffs in recent days.
At press time, the sellers controlled the market due to increased AAVE distribution in recent days. The position of the Exponential Moving Average (EMA) confirmed this.
The severity of the ongoing bear action can be seen in the fact that the 20 EMA (blue) was below the 50 EMA (yellow) line at the time of writing.
Aave in Q3
According to data from DefiLlama, Aave was implemented on seven networks and ranked fourth on the list of decentralized finance (DeFi) protocols with the highest total value locked (TVL) with a current value of $5.27 billion.
After its TVL reached a high of $7.4 billion on August 12, a few days after it introduced its $OP rewards, in Q3, the hype subsided, and it soon began to fall. Aave ended the third quarter with a TVL of $5.58 billion, down 25% from the high on August 12.
The TVL of the protocol has decreased by 5% thus far this month.
