Aave Crypto Whales Keep Accumulating Despite Market Shake Out

Whales in the Aave crypto ecosystem have been making headlines for accumulating tokens. This is while plenty of the market has been hit by downtrends.

One Aave Whale has recently added a bunch of tokens to their holdings. He boosted his AAVE position by 9,702 tokens.

This investor has made a daring move amid a broad market shakeout. This comes after making $15.3 million in profits from earlier investments.

On average, the whale has spent $183.4 per token to buy 96,800 Aave tokens since October 13. There’s an investment of $17.8 million in total.

Market Context and Whale Activity

It also stands out at a time when the Aave crypto token is in relatively weak shape. For the past 24-hours, Aave has lost over 10% of its value, along with the bulk of the crypto market.

Despite this, the whale has shown a strong bullish sentiment. In particular, the whale additionally borrowed funds amounting to 3 million GHO and ~$3.18 million of GHO and WBTC assets as a way to increase their commitment to the Aave debt market.

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As per the expert’s analysis, Aave crypto is in an uptrend with a peak of $402.43 perhaps acting as a strong resistance level.

The probability of closing a short position profitably is shown. The experts argue that AAVE in a rate-cut environment is leading to initial bullish sentiment. This is due to the broader economic and Ethereum beta rally.

However, he states that the shift in sentiment after hawkish comments from JPow shows how macroeconomic indicators could affect the token.

He states that when monetary policies take a hawkish orientation, it causes declines in risk assets and triggers the strategic short position.

In addition, the implication of previously bullish catalysts in the form of “liquidity V2, Trump buying, Blackrock involvement” implies near-top levels for Aave.

According to him, this is an easy invalidation setup for short trades. This is because these catalysts either faded or were already priced into the market.

Technical Analysis and Market Outlook

From a technical standpoint, we notice that Aave crypto has been getting rejected multiple times at the current resistance zone, having touched this zone many times before.

This implies that there was strong selling pressure at these levels. From this, a descending channel is highlighted in the blue-shaded area with a downward trend over the observed period.

This is a typical bearish market condition when the price makes lower highs and lower lows.

We also see a blue horizontal line which is acting as a support level or a psychological price level (around $300), standing as a key point from which future price actions will be made.

If the price touches these levels, this area might be a strong support zone and the price could stabilize or even reverse here.

If Aave finds support near the support area we could see a bullish projection here. We now see that the price is consolidating around this support area, hinting at the possibility of a run back up to the resistance area should it find support.