Aave Price Hits New Highs Amid Overbought Conditions

The price of Aave ($AAVE) has climbed above $180 and is among the top performers in the weekly ranking, up over 20% this week.

This strong rally may push it towards a profit-taking setup, especially with technicals now overbought. If momentum begins to slow down, investors may start taking profits, which could pressure Aave's price and make it harder for it to reach $200.

A closer look at the on-chain activity of Aave shows that its usage is actually increasing, with TVL peaking at almost $20 million, up 18% from the previous month. Fees are also climbing, crossing $37 million, a 15% increase from the same period last year.

This suggests that Aave's price rise is not just due to rotational flows from Bitcoin ($BTC), but also because of its actual usage and demand on-chain. With strong network demand, steady capital flows, and positive technical momentum, Aave could continue to outperform Bitcoin in the near term, keeping the $200 target in focus.