The week has brought excitement for Aave [AAVE] as bullish demand resurges. Notably, whales have been showing keen interest in AAVE, potentially spurring its recovery.
Per historical data on concentration, whales have been amassing the coin since the beginning of January.
On the 1st of January, whales held 8.92 million AAVE tokens, representing 55.75% of the total supply. This figure has now risen to 9.07 million tokens, equivalent to 56.69% of the total supply.
Whales currently hold the largest portion of AAVE, making them significant influencers on its price dynamics. During the same period, this investor group has reduced their holdings from 4.05 million tokens to 3.88 million tokens.
Simultaneously, retail investors have been capitalizing on the price dips, increasing their AAVE holdings from 3.03 million to 3.05 million.
Can whale interest fuel AAVE’s recovery?
Whale accumulation bodes well for AAVE bulls, suggesting a potential price rally post the recent dip. The selling pressure on AAVE seems to have diminished over the weekend, giving way to renewed demand.
Priced at $290.75 after a 13% rebound from its recent low on the 13th of January, AAVE’s money flow indicator has been trending upwards since the 8th, indicating a resurgence of liquidity into the token.
The weekend turnaround and the bullish momentum in recent days hint at a possible upswing for the coin, subject to sustained demand levels.
The latest on-chain data indicates a strong interest following the recent sell-off pressure.
For instance, AAVE’s derivatives volume hit $1.04 billion after a 61.05% surge in the last 24 hours—marking the highest daily volume of this month so far.
The spike in trading volumes underlines the heightened activity around AAVE and underscores its recovery potential. Open Interest peaked at $310.50 million after climbing by 6.95%.
Spot demand also witnessed a surge. As mentioned earlier, the Money Flow Index (MFI) has been on the rise since the 7th of January, coinciding with the shift in spot demand.
Spot outflows started to decrease and turned positive on the 11th of January.
Spot Inflows for the coin hit $5.09 million during the most recent observation, marking the highest in the last fortnight.
This surge confirms a renewed interest in AAVE during this period, raising the question of whether this demand can sustain for further upside in the upcoming days.