AAVE could be poised for a bullish pivot if these notes peak

  • ETH whales make AAVE one of the top 10 most bought coins of the week.
  • AAVE may see a bullish divergence this week.

avis [AAVE] Developments this week indicated the continuation of the downside trend that started last week. So far, the currency has failed to secure enough buying pressure to offset November’s losses. But it’s not all bleak, now that ETH whales have ramped up their demand.

Read Aaves [AAVE] Price forecast 2023-24

WhaleStats revealed that AAVE was one of the 10 most-bought coins among the top 500 ETH whales over the past 24 hours. Why is this an important note?

Well, ETH whales have a huge impact on DeFi demand and prices. Thus, WhaleStats’ note could mean that ETH whales find AAVE attractive at its current price.

Is AAVE heading for a bullish breakout?

This new revelation of ETH whales means that AAVE was building bullish demand at the time of writing. This made it one of the most watched tokens in the middle of the week, as it could lead to a re-emergence of bullish demand and more volatility. But investors need to look at where AAVE has been in terms of price action to understand the potential impact.

AAVE’s print time price of $60.16 represents a small premium from the low of $58.25 in the last 24 hours. This confirms that there is indeed some upward pressure in the market. But was that enough to support a further rally?

Source: TradingView

AAVE volume has registered a slight increase over the past 24 hours, which confirms increased trading activity. However, the rally was relatively low, which explains why the price didn’t bounce back significantly. Despite this, there has been a significant increase in the number of daily active addresses.

AAVE volume and daily active addresses

AAVE investors may find it interesting that inflows of coin addresses increased in the last 24 hours to press time. What is even more remarkable is that the receiving addresses have almost doubled the sending addresses. In other words, there is a net buying pressure that is higher than the selling pressure in the market.

AAVE address is floating

Source: Glassnode

The Supply Distribution page revealed that most of the main titles had not been added to or subtracted from their balances in the last 24 hours.

This is especially the case for addresses containing 100,000 – 10 million AAVEs. However, there was some selling pressure from titles in the 10,000-100,000 range.

AAVE Supply Distribution

Source: feeling

Titles in the 100 – 10,000 range have accumulated steadily over the past two days, removing most of the selling pressure.

What you can expect in the future

The above notes may indicate that investors increased their demand for AAVE on December 13th. Thus, the currency may face more fluctuations in the coming days if the same trend continues. The fact that the current demand is being supported by ETH whales is indeed good news for AAVE bulls.

Leave a Reply

Your email address will not be published. Required fields are marked *