AAVE, the governance token of the prominent lending protocol Aave, is experiencing downward pressure as large holders, or whales, initiated significant sell-offs early Tuesday.
This analysis explores potential price targets as AAVE’s value reacts to the intensified selling pressure from whales.
Aave Whales Sell Holdings
In a Tuesday post on X, on-chain sleuth Lookonchain noted that AAVE whales are actively selling off their holdings, with significant withdrawals noted in recent transactions.
One whale, identified as address 0x7634, withdrew 25,790 AAVE (around $3.39 million) from the Aave protocol and transferred it to the MEXC exchange. Just three hours earlier, another whale, address 0x790c, had removed 7,822 AAVE (approximately $1.04 million) from Aave and sent it to Binance. Additionally, crypto trading firm Cumberland deposited 10,000 AAVE to OKX.
The action of these AAVE whales has resulted in a sharp rise in its exchange flow balance. Santiment’s data shows that at press time, this balance is 53,000 AAVE, representing its single-day highest flow since September 10.
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The Exchange Flow Balance measures the net flow of a cryptocurrency into or out of exchanges, calculated by subtracting the total amount withdrawn from the total amount deposited. An uptick in this metric indicates that large quantities of the asset are being sent to exchanges. Such substantial inflows often signal potential price drops, as the added sell pressure can overwhelm the market’s capacity to absorb it.
AAVE’s negative price daily active address (DAA) divergence confirms this rise in selling pressure in the market. At press time, the metric’s value stands at -39.24%.
This metric compares an asset’s price movements with the changes in its number of daily active addresses. Investors use it to track whether the price movements are supported by corresponding network activity. A negative value suggests weakening demand and potential selling pressure.
AAVE Price Prediction: Where Risks and Opportunities Lie
AAVE is currently trading at $130.29, hovering slightly above its key support level at $128.45. The diminishing buying momentum signals a potential risk of a drop below this threshold. Should AAVE’s price break through this support, it could fall further to $116.10.
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Conversely, if market sentiment turns bullish, AAVE might see a reversal, with its price likely rallying toward the next resistance level of $140.79.
The post AAVE Whales Trigger Selloffs, Altcoin Targets Multi-Month Low appeared first on BeInCrypto.
