Whale Activity Raises Concerns Over AAVE Price Stability

AAVE has experienced a notable rise in whale activity, prompting caution among investors due to potential price volatility.

Whale Activity Overview

  • Lookonchain reported significant sell-offs from two whale wallets.
  • Wallet 0xd282 deposited 30,001 AAVE (valued at $4.98M) to FalconX and still holds 37,425 AAVE ($6.33M), realizing total profits of $11.8M.
  • Wallet 0x1AdC moved 11,018 AAVE ($1.86M) to OKX, incurring a loss of $293K.
  • These transactions indicate profit-taking or position exits by high-volume traders, potentially pressuring AAVE's price.

In contrast, the game Kiraverse claimed one transaction was a strategic move involving token reacquisition through different wallets, which may mitigate bearish sentiment.

AAVE Price Status

  • AAVE is currently priced at $166.29, reflecting a 7.18% increase over the past 24 hours.
  • The resistance level is set at the 20-day EMA of $177.84.
  • The RSI stands at 41.28, indicating a neutral-to-oversold condition.

The price action is near the lower Bollinger Band at $157.72, identified as a critical support level. If this level holds, a rebound toward mid-band ($174.81) or upper band ($191.90) could occur. Conversely, a drop below $159 might lead to further declines towards $128.

Long-Term Outlook for AAVE

  • AAVE maintains a dominant position in DeFi, controlling approximately 65% market share in digital asset lending.
  • Total value locked (TVL) on AAVE has reached all-time highs every month since December, reflecting increased adoption.

This foundational strength suggests that despite short-term price fluctuations, AAVE's long-term prospects remain solid. Buyers at the $128 level may present a potential opportunity for traders.