While the broader cryptocurrency market continues to grapple with bearish trends, AAVE has emerged as a standout performer, exhibiting bullish momentum. However, the altcoin’s upward trajectory might be threatened by the actions of its largest investors – the whales.
Data reveals that whales holding between 10,000 and 100,000 AAVE tokens have been accumulating the cryptocurrency since late July. Yet, a recent offloading of over $5.25 million worth of AAVE in the past 48 hours has raised concerns. Although this amount may seem insignificant compared to their overall holdings, it has managed to temporarily halt AAVE’s rally.
Despite this headwind, AAVE is demonstrating resilience. The altcoin’s correlation to Bitcoin, the market’s bellwether, has plummeted to a mere 0.03, indicating a near-complete decoupling. This independence from Bitcoin’s price movements could insulate AAVE from the broader market’s bearishness and potentially mitigate the impact of whale selling.
Also Read: Aave Borrowers Double Down – Platform Sees 40K Active Users, DeFi Recovery Gains Momentum
Technically, AAVE is trading within a broadening ascending channel, a bullish pattern suggesting a potential price reversal or continuation of the upward trend. A breakout above the $124 resistance level could ignite a 30% rally, targeting $163. However, the altcoin must first solidify support at $116 to validate this bullish scenario. Failure to do so could result in continued consolidation between $116 and $89.
While AAVE’s current bullish momentum is encouraging, the potential for whale-induced selling serves as a cautionary note for investors. The altcoin’s ability to maintain its independence from Bitcoin will be crucial in determining its future price trajectory.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
About The Author
