AAVE Price Aims for $200 as Whale Activity Aligns with Key Support

AAVE’s price is showing signs of a potential rally, with a modest 0.83% dip on Sunday providing an opportunity for buyers to reload before the next leg up. A bullish reversal pattern is forming, bolstered by recent whale buying activity that positions AAVE for sustained growth.

Crypto analytics firm Lookonchain reports a whale recently purchased 31,173 AAVE tokens worth approximately $4.8 million, depositing them into the Aave protocol. The whale then borrowed 2.7 million GHO stablecoins, swapping them for USDC before depositing on Coinbase to acquire more AAVE. This move signals strong bullish sentiment from large investors.

Data from Santiment shows large holders with 1-10 million AAVE have been accumulating since August, now holding 4.17 million tokens. This increased whale activity suggests growing confidence in AAVE’s upside potential.

The AAVE price has found support around $135, reinforced by the 50-day EMA and the 38.2% Fibonacci retracement level. This convergence of support provides a solid foundation for a potential reversal.

A 12% bounce from this support zone has pushed AAVE to $152.5, forming a bullish double bottom pattern. A breakout above the $154.8 neckline could drive prices toward $180 and potentially $200.

However, if buyers fail to sustain momentum above the neckline, sellers may push the price back down to test support at $115.

Frequently Asked Questions (FAQs)

1. What’s driving AAVE’s bullish outlook?
Recent whale buying has significantly boosted confidence in AAVE, with large holders accumulating 4.17 million AAVE. This activity, aligned with key Fibonacci support, is pushing the price toward the $200 target.

2. How is Fibonacci analysis supporting AAVE’s price?
The 38.2% Fibonacci retracement level has provided a key pullback zone, allowing buyers to regain control and pushing AAVE’s price recovery.

3. What technical pattern suggests a bullish reversal for AAVE?
AAVE has formed a double bottom pattern on the daily chart, which suggests a bullish reversal.