$AAVE price jumps 10% after major sell-off: What happens now? - AMB Crypto Analytics

Aave (AAVE) surged nearly 10%, recovering to levels where a whale had recently offloaded a significant amount of tokens. On September 4, the broader cryptocurrency market fell as Bitcoin dropped below $57,000. An AAVE whale sold 17,447 tokens worth $2.16 million at a loss, having purchased them for $4.3 million in March 2021. Despite this large dump at the $118 support level, the anticipated selling pressure did not materialize.

Currently, AAVE is trading around $130, with a 1.25% price drop in the last 24 hours but a significant 85% increase in trading volume. Open Interest has risen by 15% in the last four hours, indicating growing trader interest despite the recent drop. Technically, AAVE is in an uptrend, trading above the 200 EMA and consolidating between $118 and $134. Resistance is strong near $135, with potential to rise to $146 if breached.

Major liquidation levels are near $125 and $131.5, with significant long and short positions at risk of liquidation. As the market, including Bitcoin, Ethereum, and Solana, has dropped by around 1.2% to 4%, AAVE's price action remains pivotal, with bulls currently dominating.