AAVE Whales Trigger Selling Pressure on Aave Governance Token

Aave Whales Sell Holdings

Significant Sell-Offs Initiated by AAVE Whales

Recent observations by on-chain sleuth Lookonchain highlight a trend of AAVE whales actively divesting their holdings, resulting in substantial withdrawals from the Aave protocol. Notable transactions include one whale moving 25,790 AAVE (approximately $3.39 million) to the MEXC exchange and another transferring 7,822 AAVE (around $1.04 million) to Binance. Additionally, crypto trading firm Cumberland deposited 10,000 AAVE to OKX, further contributing to the heightened sell-off activity. These actions have led to a surge in AAVE’s exchange flow balance, hitting 53,000 AAVE—its highest single-day flow since September 10.

Implications of Exchange Flow Balance and Price Daily Active Address Divergence

The Exchange Flow Balance metric serves as a key indicator of the net flow of a cryptocurrency into or out of exchanges. An increase in this metric signals a heightened sell-off trend, potentially leading to price declines as selling pressure overshadows market demand. Amidst these developments, AAVE’s negative price daily active address divergence stands at -39.24%, underscoring weakening demand and a growing likelihood of further selling pressure in the market.

AAVE Price Prediction: Where Risks and Opportunities Lie

Currently trading at $130.29, AAVE faces a critical support level at $128.45, with waning buying momentum posing a risk of breaching this level. A potential downward move could see AAVE dropping to $116.10. Conversely, a shift in market sentiment towards bullish territory could trigger a price reversal, propelling AAVE towards the next resistance level at $140.79.

As AAVE navigates through heightened selling pressure from whales, its price trajectory remains at a crossroads, with potential risks and opportunities shaping its short-term outlook in the market.