Is $400 Possible For AAVE As Trump’s WLFi Buys Amidst Rising TVL?

The AAVE token has been trending upwards along a support line, delineating increasing buyer commitment despite a brief breach to pick liquidity.

Notably, AAVE has faced resistance near the $400 mark—a critical psychological and technical level. It showed repeated tests of this threshold, with the price hovering close to it in recent sessions.

A decisive candlestick close above $400 could catalyze a bullish continuation. Hence, potentially targeting higher resistance levels above $480, which is near the previous local peaks.

Conversely, should AAVE fail to sustain the breakout, a retreat to lower support levels might ensue. Immediate support at $335 aligns with recent lows and the ascending support trendline.

A breach below this could see it decline towards the $291 region, which would represent a significant pullback but remain consistent with the token’s broader upward trajectory since early January.

Institutions and Whale Activity

The recent financial maneuvers of World Liberty Finance, headed by Trump, also included a significant purchase of 19,399 AAVE tokens valued at $6.7 Million, indicating a substantial investment at a price point of $345.38 each.

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This event coincided with the actions of a prominent whale who moved a large volume of AAVE tokens to and from major exchanges.

Specifically, the whale transferred 17,002 AAVE tokens worth approximately $5.9 Million to Binance. This followed an earlier withdrawal of 49,640 tokens from OKX seven months prior, when the price was notably lower at $82 per token.

Due to the significant volumes involved, the timing and magnitude of these transactions indicated a strategic stance within the AAVE market, which can affect price dynamics and market perceptions.

The whale made over $13.5 Million in profit in the prior transaction history, a 330% gain, highlighting the substantial financial power that these players have in the cryptocurrency markets.

These actions point to the possibility of higher price volatility for AAVE since market players might respond to these important stakeholders’ movements.

Large-scale purchases combined with significant exchange transfers could result in speculative trading practices, which might raise it’s price in the near term but also raise the possibility of steep corrections if these key players suddenly shift their holdings.

Rising TVL of AAVE

The Total Value Locked (TVL) in AAVE further showed that it has remained consistent at $33.4 Billion, a testament to the strong brand it has established within the Web3 space.

The implementation of stETH depegging, UST depegging, and the launch of various reward programs have crucially influenced the protocol’s TVL trajectory.

These initiatives bolster user confidence and enhance liquidity, contributing directly to the stability and incremental growth of TVL.

These moves could underpin AAVE’s price resilience and continue to do so in the future.

The launch of rewards on platforms like Avalanche and Ethereum V2 has likely attracted a broader user base, thereby increasing demand for AAVE.

Each spike in TVL corresponded with these enhancements, underscoring how closely AAVE’s market valuation is tied to its perceived utility and innovation in DeFi.

Moving forward, as AAVE continues to integrate more features and incentives, it could see sustained, if not increased, interest from investors and users, potentially leading to a rise in its token value.