AAVE could be on the verge of a significant recovery after last week’s bearish performance. Demand is returning, with whales leading the way.
Whales Accumulate AAVE in Large Quantities
Over the past two weeks, whales have been heavily accumulating AAVE tokens.
As of January 1, whales held 8.92 million AAVE tokens, accounting for 55.75% of the total supply. This figure has since increased to 9.07 million tokens, or 56.69%.
Whales continue to dominate as the largest holders of AAVE, significantly influencing its price. Meanwhile, institutional holders slightly reduced their balances, while retail investors took advantage of the dip to increase their holdings to 3.05 million tokens.
Can Whale Activity Revive AAVE's Price?
Whale activity is a positive indicator for AAVE bulls, suggesting that the token's price could recover after its recent drop.
AAVE is currently trading at $290.75, marking a 13% rebound from its recent low on January 13. The Money Flow Index (MFI) shows an upward trend, indicating that liquidity is flowing back into the token.
Derivatives Volumes Reach New Highs
On-chain data reveals a significant surge in interest. AAVE’s derivatives volume increased by 61.05% to $1.04 billion, the highest daily volume this month.
This growth highlights increased activity and potential for the token’s recovery. Open interest also rose by 6.95% to $310.50 million.
Spot Market Demand Increases
Demand for AAVE in the spot market has also surged in recent days. The MFI indicator has shown a sharp upward trend since January 7.
Spot inflows peaked at $5.09 million, the highest level in the last two weeks. This metric confirms the renewed interest in AAVE during this period.
What’s Next for AAVE?
AAVE demonstrates strong demand across both derivative and spot markets.
If this trend continues, the token could reach the $300 level. However, its future trajectory depends on sustaining current demand and the broader market sentiment.
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