AAVE price outperforms the crypto market uncertainty by an 8% jump to $125 during the Tuesday trading session. The buying momentum can be attributed to whale accumulation and on-chain expansion, projecting the potential for higher recovery.
AAVE Price Rally Backed By Whale Buying and Onchain Expansion
The cryptocurrency market is still recovering from the major sell-off witnessed during July and early August. Amid the correction, the crypto-leading platform AAVE recorded a massive liquidation of $260 Million, according to Kaiko analytics. While such liquidation typically bolsters a prolonged correction, AAVE price sparked an immediate recovery, indicating the investor’s interest in its discounted value.
This accumulation thesis gained traction as the Onchain data tracker showed a recent accumulation of 31,407 AAVE ( worth $3.92M) by two whales. Despite a 28% weekly growth in AAVE, these heavy transactions hint at the potential for further rally.
2 whales bought 31,407 $AAVE($3.92M) in the past 4 hours!
Whale”0x3737″ holds 3.56T $PEPE($28.4M) with a profit of over $28M on $PEPE.
He spent 813 $ETH($2.18M) to buy 17,690 $AAVE at $123 in the past 4 hours.https://t.co/zoKrgBuOYu
Whale”0x1D15″ withdrew 13,717 $AAVE($1.73M)… pic.twitter.com/UOnnH9RU88
— Lookonchain (@lookonchain) August 20, 2024
Moreover, the recovery coincides with a notable surge in active address activity. Data from intotheblock shows the metric surge to a three-month high, indicating growing user engagement and network activity. This increase in active addresses suggests more participants are entering the market, potentially fueling further price momentum for AAVE.
Key Resistance Breakout Hints Prolong Recovery Ahead
Amid the last two weeks’ recovery, the AAVE price bounced from $90 to $125, registering a 28% growth. This recovery, backed by increasing volume, highlights the trader’s conviction to enter a long trader.
The AAVE price is up 8% today to give a decisive breakout from the $118 resistance. The Average Directional Index (ADX) uptick to 19% accentuates the recovery is in the early stage and could drive an extended recovery. If the daily candle closes, the buyers could gain suitable support to lead a 23% rally to target $153.
On the contrary, altcoin has departed from fast-moving exponential moving averages (EMA) such as 20 and 50. This often indicates an over-extended rally, which needs a short correction to recuperate the bullish momentum.
Therefore, the AAVE price may revert from the $132 resistance and revisit the $110 floor.
Frequently Asked Questions (FAQs)
AAVE V3 experienced over $260 million in liquidations due to a broad market sell-off, which impacted many assets across the cryptocurrency market.
Despite the recent $260 million liquidations, whales accumulated 31,407 AAVE worth $3.92 million. This whale buying indicates strong interest in AAVE at its current price.
The surge in active address activity, reaching a three-month high, indicates increased user engagement and network activity.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/aave-price-eyes-150-despite-million-in-liquidation-will-bulls-make-it/
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