After being rejected at $190 four days ago, AAVE has been experiencing significant downward pressure. The token has seen a continuous decline for four days in a row, hitting a low of $165.
As of the current data, Aave [AAVE] is trading at $166, marking a 10.17% decrease on the daily charts, indicating strong bearish sentiment. Amidst this downward trend, investors, particularly whales, have started selling off in panic.
AAVE whale incurs $1.54 million loss
As AAVE started its decline a few days back, whale orders also decreased accordingly. According to CryptoQuant data, Spot Average Order Size has shown a sharp decline in large whale orders.
Source: CryptoQuant
These orders are currently at a weekly low, indicating that while whales are still active, they have significantly reduced their presence in the spot market.
Onchain Lens identified one of the active whales who recently incurred a significant loss. The whale returned after 1.5 months and transferred 15,396 AAVE, valued at $2.57 million, to FalconX.
Initially, the whale received 20,396 AAVE, worth $4.89 million, from FalconX, of which 5,000 AAVE was sold for $779,056.
With this recent transaction, the whale faced losses amounting to $1.54 million. The aggressive selling by whales during a market downturn usually indicates a lack of confidence in the market.
Therefore, the current sentiment among whales is highly bearish, anticipating further losses in the near future.
Retailers join the selling spree
AAVE has been under significant selling pressure from all market participants. According to Coinalyze, the token has recorded a negative Buy Sell Delta for three consecutive days.
Source: Coinalyze
In the last 24 hours, the altcoin witnessed 165.26k in Sell Volume compared to 140k in Buy Volume. This resulted in a negative Delta of -25.2k, indicating aggressive spot selling.
In addition, exchange activity confirmed this selling trend. According to CryptoQuant, Exchange Netflow turned positive after four days.
Source: CryptoQuant
Currently, Netflow stands at 6.7k AAVE tokens, indicating increased exchange deposits. Higher exchange deposits typically accelerate downward pressure on an asset, hinting at potential further price declines.
Is $160 support in jeopardy?
According to AMBCrypto, AAVE continues to decline amidst significant selling pressure from both whales and retail traders.
The altcoin has formed a short-term bearish cross, with the 9MA crossing below the 21MA, signaling intense bearish sentiment.
Source: TradingView
The Relative Strength Index (RSI) of the altcoin has also experienced a bearish crossover, further confirming the ongoing downtrend.
Given these market conditions, AAVE is poised for potential further losses. If sellers, especially whales, continue to sell off, AAVE could break below the $160 support level and drop to $155.
To reverse this trend, the altcoin must close above the 9- and 21-MAs at $178. This would strengthen AAVE’s position, enabling it to reclaim $189 and recover from recent losses.
Final Thoughts
- An AAVE whale sold 15,396 AAVE, resulting in a $1.54 million loss.
- AAVE has declined by 10%, falling below its short-term moving averages, indicating strong bearish pressure.
following sentence:
“The cat climbed up the tree to catch the bird.”
The cat ascended the tree in order to capture the bird.