Dec 11, 2024

6thTrade

AAVE’s recent surge in whale activity, combined with technical indicators, suggests the altcoin could be heading toward a significant rally, potentially reaching the $300 mark.

In the past 24 hours, AAVE’s large transactions have spiked by over 150%, signaling renewed interest from whales. This increase in whale activity comes after a recent price drop, a pattern that often precedes trend reversals or accelerations. Whales, due to their large-scale trades, are known to have a major influence on the market, and their heightened participation could indicate a potential bullish shift for AAVE.

AAVE’s Exchange Inflows Surge

Along with the uptick in whale transactions, AAVE has seen a steady rise in inflows to exchanges over the past three days. This suggests that traders may be positioning themselves for increased volatility, possibly preparing for liquidation or repositioning of their holdings. Historically, such inflows often precede major price movements, hinting that AAVE could be on the brink of a substantial breakout.

Bullish Bias at Key Levels

AAVE is currently sitting near a crucial threshold, with a liquidation pool at $291, according to Coinglass data. This level is significant because it holds a large concentration of leveraged positions. If AAVE manages to break this resistance, it could trigger a cascade of liquidations, potentially propelling the price toward the psychological $300 mark. The strong liquidity at this price point reflects investor optimism, and a sustained bullish momentum could push AAVE closer to that target.

Technicals Point to Further Gains

AAVE recently achieved a notable technical breakout by surpassing the $243 weekly resistance level. While there has been a short-term correction, possibly due to profit-taking by the 72% of investors currently in profit, the broader market sentiment remains positive. As many big players are buying the dip, AAVE’s next major resistance is positioned at the $300 level.

The Whale Effect Could Trigger an Explosive Move

The convergence of increased whale activity, higher exchange inflows, and strong technical indicators points to a potential explosive move for AAVE. If whales continue to accumulate and retail investors follow suit, AAVE’s price could soon test and potentially break the $300 resistance, marking the next phase of its bullish trajectory.