Here’s how and why AAVE’s whales could push altcoin to $300

AAVE’s large transactions have spiked by over 150% in the last 24 hours
AAVE inflows to exchanges have risen over the last three days, indicating potential volatility ahead

As an analyst with years of experience in the cryptocurrency market, I have seen many instances where whale activity and exchange inflows have indicated significant price movements. The recent surge in large transactions for AAVE by over 150% within 24 hours, coupled with a rise in inflows to exchanges over the last three days, is a pattern that usually precedes volatility.

It appears that whales are paying attention to the surge in AAVE’s price activity. In just one day, the number of significant transactions involving AAVE increased by an impressive 150%, based on data from IntoTheBlock.

The increased whale behavior during this hike suggests that major investors might be re-entering the market, possibly due to the recent decrease in AAVE’s value. Whales typically influence the market, and their heightened involvement could signal a potential shift in trend direction or pace.

AAVE’s exchange inflows surges

The increase in whale behavior (whales being large investors) occurred around the same time as an uptick in American African Virgin Algorithmic Asset (AAVE) deposits into exchanges. Notably, these deposits have been consistently climbing for the past three days, potentially indicating that certain traders are preparing to sell off or adjust their investments.

These types of actions often precede a time of increased price fluctuations, which might indicate a substantial shift is imminent.

Bullish bias emerges at key levels

In addition to the increased trading volume, there are also indications that AAVE is leaning towards a bullish trend. Currently, the value of the liquidation pool stands at 583k when the altcoin is priced at $291, which is a significant level for market players.

This pool symbolized highly leveraged positions that could spark a rally if breached, possibly propelling AAVE towards the significant $300 price range. The accumulation of liquidity at this level underscores investors’ optimism. If the current market trend persists, $291 might serve as a launchpad for further price increases.

Instead, if this resistance isn’t broken, it could cause temporary setbacks as traders reconsider their strategies.

In simpler terms, the cost of AAVE has reached a significant milestone by soaring beyond its crucial weekly resistance level of $243, just before a brief dip due to some investors cashing out their profits (profit-taking phase), as around 72% of the investors were already making a profit.

It’s clear that the fear of missing out (FOMO) has prompted several major investors to put their money into the current downturn. At the moment, the significant resistance point is located around the $300 price mark.

The increase in whale actions and incoming funds suggests a possible significant jump for the widely favored cryptocurrency. If whales keep purchasing and smaller investors follow their lead, the price of AAVE might reach the previously mentioned resistance point within the coming days.

2024-12-11 10:15

AAVE’s exchange inflows surges

Bullish bias emerges at key levels

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