Aave surges 11.78% as bullish trends emerge with whale accumulation and buyback proposal
1min read Aave (AAVE) has recently experienced a significant surge, rising by 11.78% following a breakout from a descending wedge pattern. This technical development suggests a potential bullish trend in the cryptocurrency market. The protocol’s upcoming governance updates, significant whale accumulation, and the introduction of a $1 million weekly buyback proposal have all contributed to the positive market sentiment surrounding aave.
The price action of AAVE has been noteworthy, as it has traded within a descending wedge pattern since early 2025. After multiple tests of the descending resistance trendline, the coin finally broke above the $220 key resistance level, accompanied by price consolidation that points to a possible upward trajectory. According to analysis, there is potential for AAVE to rally towards the $258 key resistance level in the mid-term, with eyes set on the historical $350 psychological barrier over the long haul.
At the moment, AAVE’s Relative Strength Index (RSI) stood at 49, indicating there is room for further buying opportunities. Additionally, the short-term and long-term moving averages, alongside the Moving Average Convergence Divergence (MACD) and momentum indicators, have flashed clear ‘buy’ signals, further validating the strength of this breakout.
On-chain insights reveal that a remarkable 80% of AAVE tokens are held by large holders, with 56% of these investors currently seeing profits. This suggests that many whale investors are likely to continue accumulating, leading to an increase in buying pressure that could drive the price toward the $258 resistance level. Furthermore, Aave has seen large transactions exceeding $100,000 totaling an impressive $903.66 million over the past week, reflecting growing interest among traders. The volume of daily transactions has risen, paralleled by an increase in active addresses, indicating heightened network activity.
The Aave protocol has introduced a significant $1 million weekly token buyback under its new ‘Aavenomics’ initiative. This strategic move is anticipated to constrict the supply of AAVE, setting the stage for potential price appreciation following its recent breakout. The long-short ratio within a 24-hour timeframe has seen an increase from 1.4 to 1.5 over four hours, indicating that more traders are adopting long positions on AAVE, which enhances the bullish sentiment surrounding the coin. 