AAVE Price Recovers: Whale Buys Fuel Rally?

Aave (AAVE) experienced a price dip after reaching a local high of $270, briefly dropping to $239. However, recent on-chain data suggests a potential recovery fueled by significant whale activity and overall market buying pressure.

Whale Activity Sparks AAVE Price Rebound

According to on-chain analyst Ember, a whale previously sold 184.4 WBTC (worth approximately $20.4 million) via Wintermute OTC. This same whale then returned to the market, purchasing $15 million worth of AAVE (57,715 tokens) at an average price of $259.9. This whale has held AAVE for two years, with a total investment of $30.8 million, currently showing a floating profit of $26.32 million.

This large purchase isn't an isolated incident. Data reveals a significant increase in AAVE whale capital inflow, rising from 89k to 224.87k in a single day. This increase, alongside a positive netflow from large holders (1.4k to 26.86k in a day) signals strong accumulation.

Positive Exchange Netflow

Furthermore, exchange data shows three consecutive days of negative netflow for AAVE. This suggests more withdrawals than deposits, indicating strong buying pressure across the board. Sustained negative netflow is typically a bullish indicator.

Price Outlook: Can AAVE Hold $270?

The increased accumulation has already impacted AAVE's price, leading to a daily high of $262 and settling around $260—a 1.73% 24-hour gain. If this buying pressure continues, AAVE could reclaim the $270 level and potentially challenge the $284 resistance. However, a significant drop in buying pressure could result in a pullback to the $231 support level.

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