Whales Purchase $7.5 Million in AAVE Following Launch of “Umbrella” System
Aave is trading at approximately $250, down 4% in the last day, with a market cap decline of over $200 million. However, trader optimism is growing following the launch of Aave's "Umbrella" system, an on-chain staking mechanism aimed at improving capital efficiency and managing bad debt.
Key points include:
- Umbrella allows users to stake “aTokens” like aUSDC, aWETH, and GHO.
- Launched on Ethereum on June 5, with plans to expand to other chains.
- Two whales made significant purchases, buying a combined total of 29,739 AAVE tokens valued at $7.5 million.
- Whale 0x372c borrowed 5 million USDC to acquire 19,608 AAVE, increasing total holdings to 280,673 AAVE (valued at $69.4 million).
- Whale 0xeBb4 borrowed 2.5 million GHO for 10,131 AAVE, holding 120,513 AAVE worth around $29.8 million.
- These transactions indicate investor confidence amid a sideways market.
AAVE Price Outlook
The daily AAVE price chart shows an RSI near 54, suggesting potential upward movement. Key indicators are:
- Bollinger Bands show support at $235 and resistance around $280.
- Bears may exert pressure unless AAVE reclaims $260 promptly.
- An inverse head and shoulders pattern suggests a bullish signal, targeting $440 if it breaks above $280-$290.
AAVE price chart with RSI and Bollinger Bands | Source: Trading View
AAVE price chart with MACD | Source: Trading View