Recent data from IntoTheBlock reveals a notable uptick in large transactions involving AAVE, signaling a 150% surge within a 24-hour timeframe. This surge in whale activity hints at a renewed interest from major players, potentially in response to AAVE’s recent price decrease. Whales, known to impact market movements significantly, indicate a possible trend shift or acceleration with their increased engagement.
Surge in AAVE’s Exchange Deposits
The uptick in whale activity aligns with a notable increase in AAVE deposits to exchanges. Over the past three days, exchange inflows have shown a steady rise, suggesting that some traders are preparing to either sell off or adjust their positions. Typically, such movements precede periods of heightened price volatility and may foreshadow a substantial market shift.
Optimism Detected at Crucial Levels
Amidst the heightened activity, AAVE showcases a bullish sentiment, notably at the $291-price mark. Presently, the altcoin boasts a sizeable liquidation pool valued at 583k, representing a pivotal level for market participants. This pool, consisting of leveraged positions, could trigger a surge if breached, potentially propelling AAVE towards the psychological barrier of $300. The concentration of liquidity at this level underlines investor confidence, with $291 poised to act as a launchpad for further upward movements. Conversely, a failure to breach this resistance could prompt short-term retracements as traders reevaluate their positions.
From a technical standpoint, AAVE recently achieved a breakthrough by surpassing the key weekly resistance at $243, before experiencing a minor correction – likely attributed to profit-taking by the 72% of investors already in profit. Notably, the fear of missing out (FOMO) has enticed significant players to buy during the dip, positioning the altcoin to target the next major resistance level at $300.
The convergence of heightened whale activity and increased inflows hints at a potentially explosive move for AAVE. Should whales persist in their buying spree and retail investors follow suit, AAVE’s price could test the aforementioned resistance level in the coming days.