Aave [AAVE] Rallies After a Whale Purchases $20 Million Worth of the Token

After rallying to a local high of $270, Aave [AAVE] faced strong rejection and retraced. The altcoin dropped to a low of $239.

After rallying to a local high of $270, Aave [AAVE] faced strong rejection and retraced. The altcoin dropped to a low of $239.

For some investors, however, the pullback opened a window of opportunity—bringing both retail and whales back into the fold.

For starters, according to on-chain analyst Ember, a whale that offloaded 184.4 WBTC worth $20.4 million through Wintermute OTC the previous day has returned to the market.

In the past 24 hours, the whale accumulated $15 million worth of AAVE via Wintermute, acquiring 57,715 tokens at an average price of $259.9.

The whale has been holding AAVE for the past two years, with a total spend of $30.8 million to acquire these tokens. Currently, this whale sits in a floating profit of $26.32 million.

Source: IntoTheBlock

Besides this whale activity, AAVE whales are highly active in the market with a higher Large Holders Capital Inflows.

A higher inflow from whales indicates increased accumulation.

After dropping to 89k, whale capital inflow rose to 224.87k in the past day, suggesting that whales are increasingly buying the altcoin.

Source: IntoTheBlock

Furthermore, large holders’ Netflow remained positive.

Over the past day, Netflow from whales has surged from 1.4k to 26.86k. A positive netflow suggests that whales are buying more than they are selling, having offloaded 198k AAVE tokens over this period.

Source: CryptoQuant

Additionally, this buying spree is not only isolated among whales but across all market participants.

On the exchange level, AAVE has registered three straight days of negative Netflow, implying more withdrawals than deposits.

When this trend persists for a sustained period, it reflects strong bullish sentiments among investors.

Price reaction and outlook

As expected, increased accumulation has positively impacted the altcoin’s price movement. In fact, the token climbed to a daily high of $262 before settling around $260, marking a 1.73% 24-hour gain.

With the altcoin showing signs of recovery from its recent decline, it suggested that increased accumulation can push prices higher.

Therefore, if the market sentiment is witnessed over the past day, we could see the altcoin make more gains.

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With buyers holding the ground, AAVE will reclaim $270 where it has faced rejection and attempt $284 resistance.

Subsequently, if sellers retake the market, the altcoin could drop to $231 support.