The cryptocurrency market has witnessed unpredictable waves of volatility, causing various digital assets to fluctuate significantly. Amidst this backdrop, Aave (AAVE) has attracted considerable interest from investors, particularly as indications suggest that whales are currently stockpiling the token.
Accumulation of Millions in AAVE
Recent reports by renowned cryptocurrency analyst Ali on X (previously known as Twitter) have highlighted that crypto whales have invested a staggering $62 million in AAVE tokens within the past three days alone. Moreover, data from a blockchain-based transaction tracking platform, Lookonchain, has revealed that a single whale has acquired 11,663 AAVE tokens, equivalent to $3.93 million.
This significant accumulation presents a potentially favorable opportunity for individuals looking to purchase AAVE tokens.
Market Sentiment among Traders
Alongside the recent activities of whales, short-term traders are actively capitalizing on the prevailing market sentiment by predominantly taking short positions.
Analysis from Coinglass indicates that at price levels of $316, $312, and $300, bullish investors are holding long positions worth over $7.90 million. Conversely, short-sellers are heavily invested at price points of $320, $327, $340, and $345, with short positions totaling $21.33 million.
These findings suggest a strong dominance of short-sellers, potentially leading to increased selling pressure and further price depreciation.
Despite substantial accumulation by whales and investors, the price of the token has struggled to gain upward momentum, primarily due to the stagnant performance of major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
At the time of this writing, AAVE was trading around $320, showing a modest 0.45% increase in the last 24 hours. However, trading volume surged by 70% during the same period, indicating heightened activity amongst traders and investors.
Technical Insights and Crucial Levels
Recent analysis by CryptoCrypto suggests that AAVE has been moving within a parallel channel pattern ranging from $384 to $285 over the past three months. Given the current price action and market sentiment, AAVE appears to be trending towards the support level of $285.
Despite a bearish market sentiment, AAVE is currently trading above the 200 Exponential Moving Average (EMA) on the daily timeframe, signaling an ongoing uptrend.
Furthermore, insights from on-chain data highlight that the $343 and $365 price levels are encountering significant selling pressure, acting as resistance zones. A potential breakout above these levels could drive AAVE’s price substantially higher.