Whales Accumulate $62M AAVE as Short Sellers Dominate Market
Crypto markets have witnessed significant volatility, with AAVE (Aave) gaining attention from long-term holders, investors, and whales. Recent data suggests that whales have been accumulating AAVE tokens, with a total of $62 million worth of purchases in the last three days. Additionally, a single whale acquired 11,663 AAVE tokens, valued at $3.93 million.
Intraday traders appear to be capitalizing on the current market sentiment, with a strong bias towards short positions. Coinglass data reveals that short-sellers are over-leveraged at multiple levels, holding $21.33 million worth of short positions. This dominance by short-sellers could potentially lead to selling pressure and further price depreciation.
Despite significant accumulation by whales and investors, AAVE's price has struggled to gain momentum due to broader market sentiment. Major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) have been moving sideways for an extended period, impacting AAVE's price action.
At the time of writing, AAVE was trading near $320, with a modest price increase of 0.45% in the last 24 hours. However, trading volume has surged by 70% during the same period, indicating increased interest from traders and investors.
Technical analysis suggests that AAVE has been moving within a parallel channel pattern between $384 and $285 for the past three months. Based on its recent price action and market sentiment, AAVE may be approaching the support level of $285. Despite a bearish market outlook, AAVE remains above the 200 Exponential Moving Average (EMA) on the daily time frame, indicating an overall uptrend.
On-chain data reveals that the $343 and $365 levels represent areas of selling pressure, or the supply zone, which are currently acting as barriers. A breakout beyond these barriers could potentially propel AAVE significantly on the charts.
