The social activity of AAVE, the original token of the popular ghost protocol Aave, has soared in the past week, according to data from LunarCrush.

On October 12, AAVE’s social commitments reached a peak of 1.89 million. This milestone represented 2920% growth above the 7-day moving average.

There is a strong correlation between the social activity of a crypto asset and the price movement. While AAVE’s social engagements hit a new high during the intraday trading session on October 12, the price showed no such growth.

AA, why?

According to data from CoinMarketCap, AAVE traded hands for $67.38 at press time. In the past 24 hours, the price has seen negative growth of 7%.

On a daily chart, the bears ravaged the AAVE market. A look at the token’s Moving Average Convergence Divergence (MACD) revealed the start of another bear run on October 11. AAVE’s price has since fallen 9.5%, data from CoinMarketCap shows.

With a continued decline in asset price, the AAVE market has struggled in recent days with a decline in investor liquidity. At the time of going to press, key performance indicators were identified in downward trends and have been positioned as such since October 5.

Below the 50-neutral spot, AAVE’s Relative Strength Index was 33.35 at the time of writing. Heading into oversold territory, the money flow index stood at 31.43 at the time of writing.

The Chaikin Money Flow Index (CMF), which also indicates increased AAVE selloffs in recent days, rested below the midline (red) at -0.12.

With the increased AAVE distribution in recent days, the sellers were in control of the market, at press time. This was confirmed by the Exponential Moving Average (EMA) position.

At the time of writing, the 20 EMA (blue) was below the 50 EMA (yellow) line, reflecting the severity of the ongoing bear action.

Source: TradingView

Aave in Q3

Deployed on seven networks and with a current total value-locked (TVL) of $5.27 billion, Aave ranked fourth on the list of decentralized financial (DeFi) protocols with the highest TVL, according to data from DefiLlama.

In the third quarter, after the TVL rose to a high of $7.4 billion on August 12 (a few days after), launched his $OP rewards), it quickly started to decline as the hype faded. Aave closed the third quarter with a TVL of $5.58 billion, down 25% from its August 12 high.

So far this month, the protocol TVL has fallen by 5%.

Source: DefiLlama





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