Aave: Assessing impact of $6.5M whale dump on the coin

A whale sold 19,001 AAVE tokens worth $6.5 million.
AAVE has declined by 1.71% over the past 24 hours.

For the last two days, Aave’s value (AAVE) has dropped from a peak of $361 down to $335. This decrease is attributed to major investors cashing out in an attempt to capitalize on the price surge associated with the New Year celebrations.

As reported by SpotOnChain, a significant investor (referred to as a “whale”) has offloaded 19,001 Aave tokens valued at approximately $6.5 million via Binance. This transaction resulted in the whale pocketing an impressive gain of around $4.93 million.

In 2024, a significant player (or “whale”) began amassing AAVE tokens. Since then, no sales have occurred until recently in June when they withdrew about 89,109 tokens valued at approximately $7.36 million. However, following the latest deposit, this whale currently holds around 70,108 AAVE tokens, which equates to a value of roughly $23.65 million.

When whales decide to offload their holdings, it could indicate their doubt about the market’s future trajectory or a strategic move to cash in on increased prices following a surge.

Typically, this type of trading behavior can potentially trigger increased selling, as some investors may interpret the transactions as negative market indicators, which could prompt weaker holders to sell off their positions.

Impact on price charts?

Indeed, as anticipated, a surge in sales has negatively impacted AAVE’s price graph. To be precise, at the moment of this writing, AAVE is being traded at approximately $339.

71% was the drop seen on the daily charts, following which; prior to this decrease, the altcoin had been experiencing a steady increase of approximately 19.34% over the past month.

Despite the altcoin showing a downward trend on its price graphs due to the whale’s selling spree, there appears to be a widespread pessimism among investors who expect the prices to continue dropping.

Over the last 24 hours, there’s been a shift in the market indicated by a bearish crossover on the Relative Strength Index (RSI). This suggests that more sellers have joined the market compared to buyers, maintaining their control.

Moreover, the Chaikin Money Flow (CMF) stands at a value of -0.02, indicating robust selling activity.

As we delve deeper, it’s evident that there’s a bearish sentiment emerging, as indicated by the decrease in the number of on-chain transactions (outflow volume). Specifically, IntoTheBlock data shows that the outflow volume has dropped from approximately 59,220 to 33,190.

This shows that more investors are still keeping their AAVE tokens in exchanges.

The increase in this occurrence is supported by the growing netflows, which have climbed from a deficit of -22,020 to a surplus of 4,570. This indicates that more investors are moving their tokens into exchanges rather than hoarding them. Such patterns imply that investors might be pessimistic and expecting prices to drop.

Ultimately, the NVT Ratio of AAVE’s transactions has surged significantly (to 323), suggesting a possible market adjustment could occur. This surge suggests that the number of active users on the network has decreased compared to its total value in the market.

Historically, when the NVT ratio is high, it tends to signal an upcoming market correction because the price levels don’t align with the underlying market fundamentals.

Read Aave’s [AAVE] Price Prediction 2025–2026

To summarize, even though the act of whales selling can intensify market pressure, it’s important to remember that this isn’t a unique occurrence. Currently, investor attitudes seem to be turning bearish, but this appears to be temporary and may not have long-term implications.

Under current market trends, AAVE might fall to around $324. However, if purchasers return and show interest, there’s a possibility that the cryptocurrency could regain its position above $354.

2025-01-06 22:48

Impact on price charts?

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