Whales and Institutions on AAVE
On November 5, 2024, whale transaction tracker Lookonchain posted on X (formerly Twitter) that wallet addresses "0x7634" and "0x790c" along with Cumberland and Galaxy Digital collectively dumped 51,509 AAVE tokens worth $6.74 million to various exchanges.
The massive sell-off, which occurred in the past 24 hours on MEXC, Binance, and OKX, raised concerns about possible insider information or just normal selling on exchanges.
Current Price Momentum
Despite all this activity from whales and institutions, the AAVE price has remained positive over the past 24 hours. Currently, it is trading near $131.75, with a price increase of over 1.71%.
Its trading volume surged 17% during the same period, indicating increased participation from traders and investors amid the market downturn.
AAVE Technical Analysis and Future Levels
According to expert technical analysis, AAVE is neutral and is at a critical support level of $133. In addition to this horizontal support, the asset is also supported by the 200 exponential moving average (EMA) on the daily timeframe.
Historically, whenever AAVE reaches this level, it has experienced buying pressure and rallied. This time, however, traders and investors are expecting a similar surge in price in the coming days.
Based on the recent price action, if AAVE stays above $127, there are high chances that it could surge by 30% to $173 levels in the coming days.
On-chain indicators are bullish
On-chain metrics further support AAVE’s bullish outlook. According to on-chain analytics firm Coinglass, AAVE’s long-to-short ratio currently stands at 1.05, the highest level since early October 2024. Additionally, its open interest has surged by 21%, indicating that traders are adding to their positions as market sentiment begins to shift.
An increase in open interest and a long-short ratio above 1 indicates a strong buy signal, and traders and investors see this as a great buying opportunity.
