- Aave founder has dumped $6.67 million worth of AAVE since February.
- The altcoin still enjoys massive social interest and could present more buying opportunities.
Despite the market decline, Aave (AAVE) has been one of the best performing altcoins. However, the price rally has attracted profit-taking, with Aave founder and CEO Stani Kulechov leading the selling line.
According to a blockchain analysis firm Watch on the channelSince February, Kulechov has sold 55,596 AAVE, worth $6.67 million. The founder’s AAVE balance is now 243.9K coins, worth over $32 million.
Is AAVE Price Overvalued?
Source: Kaito
According to Kaito, the altcoin has gained a large share of attention on social media since its Q2 low of $75. The increase in attention share has coincided with AAVE’s recovery.
This indicates strong market interest that may have partly driven the nearly 80% recovery from the second-quarter lows.
Following the strong rally, investor cohorts that held AAVE over the past three and six months have seen unrealized profits of 27% and 26%, respectively. These figures are based on the 90- and 180-day MVRV (market value to realized value) ratio.
Source: Santiment
This metric also helps to determine whether a cryptocurrency is overvalued. Short- and medium-term holders who have high unrealized profits might be tempted to take small profits.
If this were the case, AAVE was relatively overvalued at the current price and could expose late buyers to heavy losses if profit-taking intensifies.
Key Levels to Watch for AAVE
On the 12-hour price chart, the recent AAVE recovery reached a short-term supply zone and a bearish block order (OB) near $140.
The supply zone further confirmed recent profit-taking by medium-term holders, including the Kulechov sell-off.
Since late August, the $118 level has been a key support for bulls. However, despite massive media interest, it has been difficult to break above $140.
If the selling pressure at $140 persists, the short-term supports at $118 and $109 may be good buying opportunities.
Source: AAVE/USDT, TradingView
Read Aave (AAVE) Price Prediction 2024 – 2025
That said, AAVE could still be a great opportunity, given the upside Challenge Mindshare and strong support from top cryptocurrency venture capitalists for the lending protocol.
According to Arthur Cheong, Founder and CEO of DeFiance Capital, AAVE should be the most valuable DeFi protocol.
“Unpopular Opinion: Aave Should Be the Most Valuable DeFi Protocol.”
