During Tuesday’s U.S market session, the crypto market witnessed a surge in buying pressure as Bitcoin price rallied above $70,000. The AAVE price followed the bullish momentum along with most major altcoins, signaling renewed confidence in the Q4 bull run. However, the recent whale sell-off and strong overhead resistance suggest substantial barriers that could delay AAVE’s breakout past $200.
Currently, the AAVE price trades at $150.33 with a modest loss of 0.61%. According to the Coingecko data, the asset shows a market cap of $2.25 Billion and a 24-hour trading volume of $209.15 Million.
Will AAVE Price to $200 Be Delayed as Whale Starts Profit-Taking?”
According to EmberCN tweet, a crypto whale who acquired 160,710 AAVE tokens at $89 per token during June-August has begun to cash in on his substantial holdings. In a recent transaction, the smart money transferred 19,592 AAVE ( worth approximately $3.02 Million) to the crypto exchange Binance.
This sell-off suggests that the largest holder may be looking to reduce exposure in AAVE due to a potential reversal or anticipated lack of movement in the near future. Generally, whale selling coincides with major market top and bearish sentiment, potentially delaying the recovery momentum in an asset.
With the crypto market today, the whale still holds 141,118 AAVE, currently valued at $21.78 million.
AAVE Price Analysis: Flag Reversal Hints Prolong Correction
Over the past six weeks, the price of AAVE has been sideways, with a slight downtick in the daily chart. This consolation resonating within two converging trendlines indicated the formation of a bull-flag pattern.
Theoretically, the pattern shows a strong uptrend through a ‘Pole’ formation, followed by a temporary pullback outlined by two downsloping trendlines representing a ‘flag.’ Currently, the AAVE price shows a bearish reversal from the pattern’s upper trendline, signaling another bear cycle within the flag structure.
The post-reversal could plunge the asset by 12.5% to retest the bottom trendline and prolong current consolidation.
On the contrary note, a potential breakout from the overhead trendline will signal the continuation of the prevailing uptrend.
Frequently Asked Questions (FAQs)
AAVE’s breakout to $200 could be delayed due to recent whale profit-taking and strong overhead resistance.
AAVE’s price has formed a buCurrently, AAVE shows a bearish reversal from the upper trendline of the flag, suggesting the asset may continue to trade sideways or even dip before a potential breakout.
Whale selling typically aligns with market tops or bearish sentiment, which could delay AAVE’s recovery momentum.
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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