Aave (AAVE) price has recently seen a sudden surge following a week of declines amid broader market corrections. The cryptocurrency now faces heightened volatility as the U.S. elections approach. Despite the recent rally, large whale investors appear to be selling off, with over $5 million in AAVE holdings reportedly offloaded. This whale activity signals potential downward pressure on AAVE in the near term.
AAVE Price Set to Plunge as Whales Offload $5M
Aave price may soon face potential market pressure, as four major whale wallets were recently observed moving significant holdings. Wallets 0x7634, 0x790c, 0xad6e, and 0x3356 have collectively withdrawn AAVE tokens, transferring them to exchanges like MEXC, Binance, and OKX. Such movements typically hint at possible selling actions, likely poised for after the U.S. Presidential elections.
Wallet 0x7634 led the withdrawals, transferring around $3.39 million in AAVE (25,790 tokens) to MEXC. Meanwhile, Cumberland transferred a smaller amount to OKX, totaling $1.29 million, or 10,000 tokens. Wallet 0x790c, along with Galaxy Digital, moved their AAVE holdings to Binance, worth $1.04 million and $1.02 million, equating to 7,822 and 7,897 tokens, respectively.
Whales are dumping $AAVE!
0x7634 withdrew 25,790 $AAVE($3.39M) from #Aave and deposited it to #MEXC 50 minutes ago.
0x790c withdrew 7,822 $AAVE($1.04M) from #Aave and deposited it to #Binance 3 hours ago.#Cumberland deposited 10,000 $AAVE($1.29M) to #OKX 6 hours ago.… pic.twitter.com/HzpwMPtz37
— Lookonchain (@lookonchain) November 5, 2024
Recent blockchain data from Lookonchain reveals substantial Aave (AAVE) withdrawals, hinting at a potential sell-off by crypto whales. A wallet identified as 0x7634 moved approximately $3.39 million worth of AAVE to the MEXC exchange, a move suggesting possible liquidation.
Additionally, significant funds were shifted to other exchanges: around $1.04 million was transferred to Binance, $1.29 million was deposited to OKX, and another $1.02 million was routed back to Binance, all within the last 24 hours.
Large transfers to exchanges often suggest an intention to sell, potentially signaling a market response if the tokens are indeed liquidated.
Aave Price Dips Amid Market Volatility
Aave price has slipped, facing a 12% decline over the past week. The token reached a peak of $158 at October’s end but has since entered a downtrend.
This decline has only been briefly interrupted by a minor recovery today, placing the value of Aave at $132, marking a 1.67% daily increase. Despite this uptick, Aave has yet to recapture meaningful bullish momentum in the face of broader market uncertainty.
The cryptocurrency market is seeing some optimism, likely influenced by ongoing election events in the U.S. However, for Aave to secure a lasting rebound, it must break above significant resistance levels. Until then, the token remains susceptible to further drops if it fails to stabilize.
If the current trend persists, AAVE could face notable price fluctuations soon. This stabilization hints at a possible consolidation phase or a short-term recovery as buying interest appears to return. Should the best altcoin sustain a rise above $140, it might approach the $150 resistance level, but a drop below $130 could see it testing support around $120 again.
Aave’s price faces heightened risk amid recent whale sell-offs and market uncertainty. Further volatility is likely post-election. A drop below $130 could trigger declines, with $120 as the next support. Sustained buying interest is crucial for stability.
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