The recent decline in the value of AAVE suggests a significant shift in sentiment in the market as retail investors react to bearish signals. During this decline, AAVE is reaching technically critical levels and trying to shape its future movements.
According to the latest data from COINOTAG, “AAVE’s ability to recover will depend on its performance in the identified demand zone.”
AAVE is in a downtrend, driven by selling pressure from retail investors, while the market is seeking stability in critical demand areas amidst market sentiment swings.
The price of AAVE is currently facing downward pressure, and a continuation of this decline is expected to seek critical support levels where buying demand may emerge. According to analysts, these support zones are located between $135.34 and $116.21, which could constitute important thresholds for market stability.
Accurately identifying demand zones is of great importance to investors, as buying interest can intensify at these levels. Based on technical analysis, if AAVE can stabilize at these determined price levels, it is likely to experience a recovery towards its previous highs and return to the $200 level under favorable market conditions.
Recent developments in the AAVE market have shown that retail investors are generating significant selling pressure. Data shows that the market value of AAVE has decreased significantly as retail investors liquidated their positions.
According to data shared by IntoTheBlock, there has been an increase of 1,220 active addresses in the last 24 hours. This shows that investors are inclined to make urgent sales. Many market participants prefer to sell to minimize their risks rather than increase their assets.
Another important factor to consider in the AAVE market is the actions of large investors, known as “whales.” Interestingly, whale activity has been weak recently. There has been a significant decrease in large trading volume; on November 12, there were 334 transactions, while currently this number has decreased to 126. This decrease indicates that large investors are taking a cautious approach to the volatility of the market.
If AAVE can find support in identified demand zones, we could see an increase in whale activity. Large investors often reassess market conditions when they see favorable buying opportunities, which could help stabilize the price of AAVE.
In the face of turbulent market conditions, many investors are turning to long-term holding strategies. This trend is manifested by large withdrawals of assets off-exchange, creating a bullish sentiment despite the current decline.
According to the latest Exchange Netflow data, a total of 22.09 thousand AAVE was withdrawn from exchanges in the last 24 hours and 67.46 thousand AAVE last week. This trend indicates that investors are choosing to move their assets off exchanges. This could lead to a supply constraint and, with increasing demand, a price increase.
Ultimately, AAVE’s price will be shaped by whether it can find support, particularly in defined demand zones. The behavior of retail investors and the approach of whales will continue to have a significant impact on AAVE’s future direction.