A whale moved 19,001 AAVE crypto worth roughly $6.5m to Binance. Whale did this for about $342 per token earlier as prices showed signs of a possible breakout. This transaction seems to have made the whale a profit of $4.93 million.
Whale’s trading activity is back through mid 2024, which makes this event not an isolated one. On June 23, 2024, the same investor cashed out 89,109 $AAVE crypto from Binance. They did this at an average price of $82.55 per token, or $7.36M. With today’s sale, the whale still holds 70,108 $AAVE tokens, currently valued at ~$23.65 million.
A whale deposited 19,001 $AAVE ($6.5M) to #Binance at $342, allegedly securing a $4.93M profit 7 hours ago.
On Jun 23, 2024, this whale withdrew 89,109 $AAVE from Binance at ~$82.55 ($7.36M) via 2 wallets.
Now, the whale still holds 70,108 $AAVE ($23.65M) with an est. total… pic.twitter.com/I9ZQtAcao9
— Spot On Chain (@spotonchain) January 6, 2025
Is This an Aave Buy Signal?
The whale decided to front-run his profits while holding on to a healthy amount. The whale has been cautious yet optimistic by placing 19,001 $AAVE back to Binance. This is a dual strategy whereby investors close out some profits while retaining much of their investment based on faith in the long-term potential of the asset.
The way these whales act often impacts the market sentiment where it is used as both a psychological and technical indicator for retail traders. Whales are perceived as people who know better or know more or have some insider data and their movements tend to bring other smaller investors or repel other smaller investors from the market. In this situation, the holding back of a large amount of Aave suggests its bullish prospects, although short-term profits are realized.
Aave Crypto Technical Analysis: A Breakout in the Making?
The price action of Aave crypto looks like a breakout could be happening. After declining from recent highs, the token’s price is siphoning off within a falling wedge pattern that is a classic bullish reversal setup on a technical analysis. As of writing, Aave is changing hands at $339, lower than the $342 level which they have sold.
On the one-hour chart, the lower highs and lows have established the mark of a wedge formation. By contrast, falling wedge patterns are usually preceded by rising prices and the breakout usually happens at the upper trendline. If Aave can eclipse the $345 resistance it might offer an indication of an upcoming reversal into a definitely much better uptrend.
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This average direction outlook is supported by the Average Directional Index (ADX) that is at 14.26. A low reading here indicates a weak directional strength and with bearish momentum fading. This technical setup, coupled with the accumulation of AAVE by whales that we observe is bullish in the short term.
AAVE Current Price Performance
Aave’s current performance and potential are further contextualized through market data. But at this time, Aave crypto has a market capitalization of $5.1 billion, down 1.41% over the last 24 hours (as per CoinMarketCap). However, in the same period, the trading volume has skyrocketed by 21.89%, coming to $510.5 million. Increased activity, even in light of slight price corrections, usually rings an investor bell for heightened interest.
In terms of its stand-out solidify spot, DeFi on Aave is second to none as Total Value Locked (TVL) on Aave sits at a whopping $22.22 billion. Aave still is undervalued (according to market cap to TVL ratio of 0.2294x). Based on that, there is certainly a lot of room to rally, especially if the sentiment in broader market turns bullish.
