Whale Has Aggressively Accumulated Over 118,000 AAVE Units, Setting the Stage for a Potential Breakout

A whale has aggressively accumulated over 118,000 AAVE units since 1 May, with the latest $4.96M purchase made just hours ago. These purchases have pushed

A large cryptocurrency whale has been aggressively accumulating AAVE in recent hours, adding over 118,000 AAVE since 1 May, according to DeFi researcher Glassnode.

The latest purchase, worth about $4.96 million at current prices, was made just hours ago.

With this latest purchase, the whale’s AAVE holdings have now risen to over 261,000, valued at around $69.8 million at current prices.

The whale has been buying AAVE mainly from centralized exchanges, including Kraken and Wintermute. So far, the accumulation has not triggered any significant resistance.

However, the timing of the purchases seemed to coincide with AAVE testing major resistance levels on the price charts.

This aggressive activity raises two possibilities. Either the whale anticipates a sustained rally in AAVE, or they are building liquidity for future distribution.

The whale’s large-scale accumulation activity is unfolding as AAVE struggles to break through the crucial resistance at the 2023 highs of $279.

If the token manages to close a daily candle above this level, it could pave the way for a surge towards the Fib 1.618 level at $380.

However, if seller pressure prevails, AAVE might experience a correction towards the 20-day exponential moving average at $250, offering a buffer against steeper declines.

Despite the recent surge in AAVE price and network activity, indicators suggest that the token might face difficulties sustaining gains.

Specifically, the Stellar blockchain, commonly used for AAVE transactions, is displaying a concerning trend with a 54.77% uptick in zero-balance addresses over the past seven days.

This development could be linked to either users exiting the network or wallets being recycled.

In contrast, the number of active addresses has increased minimally, by 0.21%, while new wallet creations soared by 31.94%.

This disparity suggests that while interest in AAVE has surged, sustained participation remains limited.

Furthermore, analysis of address concentration trends over the past month reveals a shift in favor of whales, who have increased their holdings by 3.32%.

Conversely, mid-sized investor addresses have experienced a decrease of 6.13%, and retail participation has seen a minimal increase of 1.27%.

This shift in favor of whale dominance could either reinforce market stability or signal risk if those same whales decide to sell their massive AAVE positions.

Moreover, the exit of investor-tier holders, typically known for more stable participation compared to retail traders, reduces a key layer of support for Agave.

The post AAVE whale increases holdings to 261k, signaling potential breakout or upcoming selloff appeared first on Chain News.

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