A Giant Whale Has Been Identified as Having Invested in Aave (AAVE) Crypto, Which May Be Followed by a Price Surge Soon

The whale bought 50604 AAVE worth approximately $678 million at an average price of $13460 for the actual purchase

A giant whale has been identified to have made a huge investment in Aave (AAVE) crypto, which may be followed by a price surge soon. The whale bought 50,604 AAVE, which is approximately valued at $6.78 million at an average price of $134.60 for the actual purchase.

This whale bought 50,604 $AAVE($6.78M) again 20 mins ago and currently holds 125,605 $AAVE($16.9M) with an average buying price of $134.6.https://t.co/Cn5oNqLdqAhttps://t.co/jjJN59HBqF pic.twitter.com/fGPLn8uANu

These worthwhile actions have piled their overall AAVE tokens to 125,605 tokens, which is approximately $16.9 million by their present market value. Such a massive stake by a single entity is always likely to raise an eyebrow among traders and investors. It may signal an intention to push up AAVE price.

Such purchases can be considered bullish and indicate a price rally. As such huge volumes suggest that people are confident in the token’s future. The average buying price was $134.6, which may be slightly high for customers.

This means the whale considers this level an opportunity to invest heavily in prospects that would increase the price. However, the current price of AAVE is about $129.18. The whale’s holdings are still below the purchase price. It suggests that the short-term position might be bearish, but a bull run is possible.

After such massive accumulation, Aave had a good run during the last dip. It has yet to pull through with a spike in its value, as it saw a 0.55% decrease in the previous 24 hours. During press time, AAVE was floating around $129. 18, the market capitalization of the firm is around $1.93 billion.

The 24-Volume has also experienced an uptrend with a 131.38% change to $492.5 million. This increase in the volume of the token is a sign that the market is paying attention to AAVE. Investors are waiting for the token to bounce back.

Technically speaking, as seen in the Aave price charts, a ‘Falling wedge’ formation is regarded as a bullish reversal pattern in technical analysis. This has been building over several days and takes the shape of a pattern of diminishing upper Bollinger Band ‘peaks’ and lower ‘troughs’ clustering about a point.

The price action in the current period, which holds around $131.42, is testing the upper limit of this pattern. In case of a breakout above this level, the price could surge and approach or transgress the whale’s average purchase price of $134.6.

An increase in trading volume marks an active trading period for the project. This volume surge results from the whale’s purchase and indicates that outside market sentiment is also becoming sensitive to AAVE prices.

Furthermore, the total value locked in Aave’s protocol was about $10.88 billion. This indicates that AAVE is still being used massively. The rise in the TVL could also indicate the users’ confidence in the stability and security of the platform, which could positively impact the AAVE market capitalization.

On the one hand, a technical analysis of AAVE, which also recently hit supply zone resistance, hints at a potential bullish breakout. On the other hand, the overall market conditions are ambiguous. It remains incumbent upon stakeholders to monitor the Federal Reserve policy front running interest rates, macroeconomic data points, and subsequent regulatory forces that shape the market where AAVE and other cryptocurrencies exist.

In AAVE’s case, the northward run will likely be supported by the whales continuing to pile up their stakes, ideal technical indicators, and a conducive market environment. A buy signal would expect a breakout above the falling wedge pattern.

Trade traders should vigilantly await evidence of an above-the-fall wedge pattern. But, if they fail to carve out a new high above the descending triangle, we may, at best, see further consolidation or even a downside break, especially in a worsening macro environment or, more generally, a crypto market rout.

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