There has been a sharp increase in profit-taking as a result of the spike in AAVE price since the start of the trading week. according to the latest data.
The altcoin’s price climbed by 8% since the start of the week as of press time, when it was trading for £70.6. Many AAVE investors have decided to take advantage of the price increase, with the ratio of daily on-chain transaction volume in profit to loss having gone up during this time period.
Data from Santiment showed that as of the time of writing, it was 2.736.
As is true for a number of altcoins, AAVE’s positive correlation with BTC has been historically strong. Therefore, AAVE might rise further if BTC stabilises over the psychological £17,900 price range.
The price of AAVE has been rallying so far this week. The buying pressure for the asset has risen recently, according to the daily chart.
Since October 3, more liquidity has been injected into the AAVE market, and as of press time, its RSI has gone up to be in the neutral 50 zone.
Additionally, its MFI attempted to cross over above the centre line, reaching 53 as of October 5th. At the time of writing, it was on the 50 centre line.
On October 5 during the intraday trading session, its CMF reached a high of 0.04 above the centre line. It currently stands at 0.02.
The increased profit-taking has forced these key indicators to grow flat following their rally on increasing buying pressure that has been there this trading week.
This suggested that the rally had failed to sustain. The sellers seemed positioned to take over the market as of press time.
According to Santiment data, since the start of the week, there had been an average of 9 whale transactions worth more than £89,500 per day.
The daily count this week for whale transactions above £895,000 was two transactions as of October 4. The network has very few whale transactions, and hence insufficient support for a rally just yet.
Furthermore, the MDIA of AAVE revealed network stagnancy.
AAVE might see some gains in the event of BTC going up, but any such gains would be short-lived if the network’s stagnation persists.