AAVE Price Soars 46.5%, But Overbought Signals Flash Caution

AAVE's price surged by 46.5% in just one week, reclaiming its major moving averages at $128.38 as of August 26, 2026. This marks a significant shift from the token's twelve-month performance, with the price sitting 61.8% below its high of $336.27 set on August 27, 2025, and 110.7% above its low of $60.93 from June 7, 2026.

The RSI reading of 74.5 indicates that a large part of the short-term move has already happened, but the arrangement of moving averages is constructive, suggesting an extended bottoming phase.

However, market sentiment is extreme greed, with the Fear and Greed Index at 81 points, which has historically coincided with local tops rather than durable bottoms. The current volume also fell back to less than half its peak, indicating demand is no longer at the level that produced the advance.