AAVE's price surged by 185% from its April low, reaching a peak of $326 over the weekend, but signs of a potential pullback are emerging. The token has formed a double-top pattern on the weekly chart, with a neckline at $113.8, suggesting a possible decline to the 100-day moving average near $190 if it fails to break above the $377 resistance.
Whale activity has stalled, with no new accumulations since August 14, and smart money investors reduced their holdings slightly from 294,000 to 293,000 tokens. Exchange supply increased to 5.42 million tokens, indicating selling pressure. Despite this, AAVE's fundamentals remain strong, with Total Value Locked (TVL) hitting a record $41 billion and monthly fees rising to $80 million in August.
A false rumor about World Liberty Financial (WLFI) allocating 7% of its token supply to AaveDAO caused an intraday drop of nearly 8%, but the price quickly recovered, closing only 1% lower. The rumor, denied by WLFI and AAVE founder Stani Kulechov, sparked panic but was met with strong buying interest. Net outflows of $1.64 million and positive Chaikin Money Flow (CMF) indicated traders capitalized on the dip. Technical analysis suggests a potential 24% surge to $430 if support at $340 holds, though a drop below $311 could invalidate the bullish outlook.