Can Aave Price Soar 140% Amid Spike in Whale Acitivity?

Aave price has been on a tear, rising 111% since the August 5 low. Most recently, the asset broke above a bullish reversal structure that hints at 2X gains in the short-to-midterm range. Most of the chatter around Aave has been around its association with the newly launched World Liberty Financial, owned by Donald Trump. 

The hype around WLFI and Aave seems strong, as it propelled the asset to hit highs not seen in the last 2.5 years. Aave whale activity has also risen, with a notable large investor accumulating over 60,000 AAVE in just four days. Is a price surge inbound? 

Onchain Metrics Hint At Continuation Of Aave Price Rally

A large investor recently purchased 12,633 AAVE ($2.02 million) today, bringing their total portfolio balance to 60,624 AAVE ($9.36 million). This buying spree, which lasted over the past four days, may have contributed to the price of AAVE increasing by about 10%.

The whale bought another 16,818 $AAVE($2.59M) 3 hours ago and deposited it into #Aave.

Then he borrowed 2M $GHO to buy more $AAVE.

This whale bought a total of 47,991 $AAVE($7.45M) in just 2 days.https://t.co/Aj7wIlf5SJ pic.twitter.com/gVPGFE8W6S

— Lookonchain (@lookonchain) October 14, 2024

Data from IntoTheBlock analytics shows a surge in the number of large transactions around Aave from 63 to 129 in the last seven days. This is a 104% increase, suggesting that large investors are getting particularly interested in the Aave token.

Additionally, Santiment data shows the 30-day Realized Cap decreased throughout October, while its corresponding 365-day metric has been increasing. This discrepancy suggests a shift in investor behavior where recent investors, possibly those who bought within the last month, sell their holdings. In contrast, long-term investors are holding onto their assets or even accumulating more.

The selling pressure from short-term investors could lead to a temporary price decline. However, the continued accumulation by long-term holders might provide a floor for the Aave price, preventing a significant drop and potentially leading to a rebound.

Derivative Traders Are Bullish on AAVE

A look at traders’ behavior suggests that they are bullish on the price of AAVE. The Coinglass Liquidation Map data shows an overwhelmingly more cumulative Long Liquidation Leverage and the corresponding shorts.  There are $5.29 million in Shorts versus $16.48 million in Longs. The imbalance shows bullish sentiment is dominating the market because traders anticipate further upside potential for the Aave price.

The price of AAVE has increased by 3.9% in the last 24 hours and is trading at $165.20. Technical analysis shows a breakout from a bullish cup and handle pattern, hinting at a staggering 2.4X in the coming weeks.

AAVE Technical Analysis: Can Aave Reach $400?

The recent rise in Aave price has caught attention due to significant whale activity, technical bullish indicators, and the general crypto market sentiment.

The chart shows a classic cup-and-handle formation, which is typically a bullish continuation pattern that signals the resumption of an upward trend after a period of consolidation.

AAVE price is likely to find resistance at $230, which aligns with previous highs and is the first measured move target based on the height of the cup, and $400, based on the full breakout potential of the pattern, representing a 140% upside from the current price.

The relative strength index (RSI) is moving into overbought territory due to the recent breakout, which may signal a short-term pullback or consolidation phase before the next leg up.

Conversely, there is support at the $120-$130 range, which was previously a resistance zone and now acts as a base for further upward movement. However, if the price falls further, the strong support around $80, which aligns with the lower boundary of the handle structure, can hold the Aave price up.

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Evans Karanja

Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.

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.