Aave is under pressure as large investors, known as whales, are selling off their holdings amidst an overall price decline.
Aave Experiences a Persistent Price Decline
In the past five days, Aave (AAVE) has shown five consecutive red candles on the daily chart, indicating a continuous drop. After reaching a local high of $158 at the end of October, Aave’s price dropped 14% to its current level around $129. Although there is a slight recovery today, Aave is still searching for bullish momentum in a highly volatile market environment.
The broader market is experiencing mild recovery due to events related to the U.S. elections, reflected in Aave’s 1.1% gain today. However, without breaking through key resistance levels, Aave remains vulnerable to further declines.
Whales Are Significantly Selling Off Their Aave Holdings
One of the reasons for Aave’s price drop is a series of large sales from key investors. According to Lookonchain data, significant whale transactions have been directed to exchanges, signaling potential sell-offs.
For example, wallet address 0x7634 moved AAVE worth $3.39 million to the MEXC exchange, possibly indicating an intention to sell. Other notable transactions include a $1.04 million transfer to Binance, a $1.29 million deposit to OKX, and another $1.02 million to Binance over the past 24 hours. These large movements indicate that whales are reducing their Aave positions, putting downward pressure on the asset’s price.
Does AAVE Have a Chance to Survive This Sell-Off?
At the time of writing, Aave has risen by 0.66% and is trading at $129.65. However, over the past seven days, the price has dropped by 15.74%, and its market capitalization has fallen to $1.94 billion.
The daily chart (DMI) confirms a bearish trend: -DI stands at 27.6, indicating strong selling pressure, while +DI is at 13.8, showing weak buying interest. ADX is at 19.8, indicating a low trend strength and a potential period of price consolidation. This situation could provide bulls with an opportunity to reduce selling pressure.
The chart further shows that the current price is holding just above the support level at $126.2. If the price drops below this level, Aave could face another dip below $120.
To reverse sentiment and shift the trend, Aave would need to reach the pivot level at $147.12, representing a 13.5% increase from the current price. Even then, Aave would face additional resistance levels at $160.04, $168.03, and $180.96.
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