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- Whales withdrew $53M in AAVE, tightening supply.
- Key trendline supports upside toward $371–$430.
- Futures market whale dominance adds volatility risk.
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Aave (AAVE) is once again in the spotlight as whales continue heavy accumulation, fueling optimism about the token’s next move. A smart trader recently scooped up 4,831 AAVE worth $1.58 million, while another whale withdrew 25,097 AAVE valued at $7.9 million. Over the past week, this same whale has removed 167,451 AAVE—worth $53.65 million—from exchanges, tightening supply and strengthening the bullish narrative.
At press time, AAVE was trading at $320.76, up 1.72% on the day, as it hovers just above key support levels.
Ascending Trendline Holds Key to Breakout
Since April, AAVE has respected an ascending trendline, with critical support forming near the $298 Fibonacci level. As long as this trendline remains intact, bullish targets lie ahead at $371 and potentially $430, the 1.618 Fibonacci extension.
However, any breakdown below $298 could undermine this bullish setup, raising the risk of a deeper retracement. For now, the technical structure favors upward momentum.
Futures Market Dominated by Whale Orders
Beyond spot buying, AAVE’s Futures market has also been driven by outsized whale trades. Data from CryptoQuant shows that large orders dominate the order flow, often a precursor to sharp price moves due to liquidity imbalances. While this strengthens the bullish case, it also heightens volatility risks, particularly when these positions unwind.
Long/Short Ratio Tilts Toward Bulls
The Long/Short Ratio currently sits at 1.76, with longs holding 63.84% of positions compared to 36.16% shorts. This imbalance signals strong trader conviction in higher prices and aligns with whale accumulation. Still, heavy long positioning could trigger sudden corrections if momentum shifts.
CoinGlass data highlights liquidation clusters between $317 and $335, creating a narrow volatility zone. A push above $335 could squeeze shorts, propelling AAVE higher. Conversely, a dip below $317 risks long liquidations, potentially dragging prices lower.
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AAVE’s bullish setup is supported by whale accumulation, leveraged long dominance, and a robust ascending trendline. As long as AAVE holds above $298, the probability of a rally toward $371 and even $430 remains strong. Traders should watch the $317–$335 range closely as the next decisive battleground.
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
Also Read: AAVE Hits $40B TVL, Reclaims $300 as It Dominates DeFi Lending Market
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