Whale sells $2.57 million worth of AAVE taking $1.54 million loss

Since getting rejected at $190 four days ago, AAVE has faced intense downward pressure. The token has declined for four consecutive days, hitting a local low of $165. 

As of this writing, Aave [AAVE] traded at $166, down 10.17% on the daily charts, reflecting intense bearish pressure. Amid this market breakdown, investors, especially whales, have panicked and started offloading. 

AAVE whale takes $1.54 million loss

As AAVE started declining days ago, whale orders dropped alongside it. According to CryptoQuant data, Spot Average Order Size has shown a sharp decline in large whale orders. 

Source: CryptoQuant

In fact, these orders are at a weekly low; thus, although active, whales have scaled back significantly in the spot market. 

Onchain Lens observed one of the active whales. Notably, a whale returned after 1.5 months and sent 15,396 AAVE, worth $2.57 million, to FalconX.

The whale initially received 20,396 AAVE, worth $4.89 million, from FalconX, of which 5,000 AAVE was sold for $779,056. 

With the recent transaction, the whale realized $1.54 million in losses. Usually, when whales turn to aggressive selling during a market downturn, it signals a lack of confidence in the market. 

Thus, whales are highly bearish and anticipate potentially more losses in the future. 

Retailers are also selling aggressively

AAVE has faced significant sell pressure from all market participants. According to Coinalyze, the token has recorded a negative Buy Sell Delta for three consecutive days. 

Source: Coinalyze

Over the past 24 hours, for example, the altcoin saw 165.26k in Sell Volume compared to 140k in Buy Volume. As a result, the altcoin saw a negative Delta of -25.2k, a clear sign of aggressive spot selling.

Coupled with that, exchange activity also validated this selling activity. According to CryptoQuant, Exchange Netflow turned positive for the first time in four days. 

Source: CryptoQuant

As of this writing, Netflow was 6.7k AAVE tokens, indicating higher exchange deposits. Usually, increased exchange deposits accelerate downward pressure on an asset, a prelude to lower prices.

Is $160 support at risk?

According to AMBCrypto, AAVE has continued to decline amid intense selling pressure from whales and retail traders.

As a result, the altcoin formed a short-term bearish cross, with the 9MA crossing the 21MA to the downside, indicating intense bearish pressure.

Source: TradingView

At the same time, the altcoin’s Relative Strength Index (RSI) made a bearish crossover, further validating this downtrend.

Therefore, these market conditions position AAVE for potentially more losses. If sellers, especially whales, continue offloading, AAVE will breach the $160 support and drop to $155.

For a trend reversal, the altcoin needs to close above the 9- and 21-MAs at $178. This will strengthen the altcoin, boosting it to reclaim $189 and clear recent losses.

Final Thoughts

• An AAVE whale offloaded 15,396 AAVE, worth $2.57 million, taking $1.54 million loss. 
• AAVE declined 10%, dropping below its short-term moving averages, reflecting intense bearish pressure.