Aave [AAVE] remains a dominant DeFi asset in the realm of cryptocurrency for large investors. Interestingly, a significant investor has been steadily acquiring AAVE, amassing 96,800 tokens valued at $17.8 million, with an average cost of $183.4 per token.
The recent acquisition of 9,702 AAVE, bought using $3.18 million in GHO and WBTC, showcases the investor’s commitment to the asset even during market downturns.
With an unrealized profit of $15.31 million, marking an 86.2% increase in value, the investor’s position demonstrates substantial faith in the market.
This calculated accumulation strategy could indicate expectations of a forthcoming uptrend or stability at current price levels, depending on market dynamics.
Intelligent DEX Traders and Significant Investors Seize Market Opportunities
An overall analysis reveals a notable return of significant investors and Smart DEX traders. After offloading assets at $368 and $381, major investors re-entered the market, injecting over $3.2 million into AAVE within a single day.
Noteworthy is the investor ‘0xe823’, who secured profits amounting to $118,000, yielding returns three to four times the initial investment.
Similarly, investor ‘0xfcc5’ reinvested $1.4 million, generating returns between 3.2 to 3.3 times, now controlling a significant 963,000 AAVE valued at $331.60 million.
Furthermore, Smart DEX traders like ‘0xb040’ re-entered by purchasing $679,000 worth of AAVE after making profits equivalent to 3.8 times the initial investment.
This trend indicates a strategic capitalization on the recent price decline by both investors, signaling confidence in the potential resurgence of AAVE’s value.
Forecasting AAVE’s Trajectory and Investor Profitability
Current AAVE prices, accompanied by the renewed interest of Smart DEX traders and major investors following the recent dip, could pave the way for a market recovery. AAVE is trading slightly above the critical Fair Value Gap (FVG) at $300, a level that previously acted as a launchpad for price rallies, forming a robust support zone.
If AAVE maintains its current momentum above this threshold, a significant uptrend might ensue, affirming a bullish outlook and potentially reaching new highs.
The rising trading volumes underscore the growing confidence in AAVE’s future, hinting at possible upcoming peaks.
Moreover, the MACD signal exhibits a bullish crossover, further supporting the idea of a sustained uptrend. Should AAVE remain above the FVG, the trajectory towards $500 by 2025 seems increasingly feasible.
WLD’s Year-to-Date Average profitability data indicates that 23.29% of addresses are ‘in profit,’ in contrast to 11.61% ‘at a loss.’ This disparity suggests a prevailing sentiment of investor optimism.
Recently, the percentage of profitable addresses rose by 10% to 33.72%, indicating a robust support level around the current price point of $340.71.
If this trend persists, there is a possibility for AAVE’s price to stabilize or surpass $500 by 2025, driven by positive investor sentiment and diminishing selling pressures.