Aave (AAVE) Whales Accumulate Millions Worth of Tokens, But a Deep Retracement Is Likely

Aave [AAVE] saw a high volume of buying from whales recently. Lookonchain pointed out that whales have been buying AAVE worth millions of dollars since the 20th of August.

Whales have been accumulating millions of dollars’ worth of AAVE since 20 August, according to recent blockchain data.

One address, in particular, bought AAVE worth $10.4 million in less than a day. This accumulation trend among whale addresses signaled bullishness for AAVE.

However, the price faced a strong rejection at the $140 resistance zone, which marked the local top in March. This rejection indicated a high probability of a deep retracement.

Crypto analyst Ali Martinez highlighted that the TD Sequential flashed a sell signal on the AAVE daily chart, which has seen a 27% drop on average. If this correction plays out, AAVE could drop to the $100 mark.

AAVE’s daily timeframe showed a strong bullish structure and momentum, with the OBV also making a new high to indicate significant buying volume behind the rally.

Despite all the positive signs, AAVE’s price still stopped at the $140 resistance zone, which marked the March highs.

Based on the July rally, a set of Fibonacci levels had been plotted, which showed that $142.58 was also the 100% extension of that move, reinforcing the strength of the resistance here.

AAVE’s 30-day MVRV was the highest it has been since early March, indicating that short-term holders were largely in profit, which could lead to selling pressure.

The mean coin age has also lacked a consistent trend over the past month.

On the other hand, the falling mean dollar invested age was a huge positive, signaling increased token circulation and new investments, which is a bullish sign.

Therefore, a retracement toward $105-$115 followed by a rally appeared likely for Aave.

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