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AAVE: Here’s why the token is in whales’ latest shopping list

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AAVE: Here’s why the token is in whales’ latest shopping list

While technical analysis offers insight into the performance of crypto assets and where the market sentiment lies, ‘buying the dip’ at a specified ‘bottom’ is not always as easy as many people make it out to be.

In a newly published report titled “ Whale Watching During the Dip: Where’s the Accumulation Happening?”, analytics platform Santiment noted,

“Buy low, sell high sounds easy in practice. But in a wobbly, volatile market like cryptocurrency, defining what the “highs” and “lows” actually are is next to impossible, and always a relative science instead of precise.”

The big boys are still buying AAVE

According to the report, Santiment found that AAVE tokens ranked the highest amongst the top three crypto assets that the whales have accumulated since the general crypto market downturn started. Furthermore, considering the index for AAVE holding addresses since the beginning of the year, Santiment asserted,

“ We’ve just seen a huge accumulation spike from the 10k to 1m addresses, which make up 47.7% of the supply holders now. Prior to 20 June, they were holding 42.3% of the supply. As you can imagine, a sudden one-day accumulation of over 5% of the supply from these millionaire holders is a welcome sight for future price prospects.”

But wait!

While it is noteworthy that whales hold over 45% of AAVE tokens in circulation, a look at the index for previously idle AAVE tokens that have now moved addresses revealed something interesting.

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In the last few days, there has been a sudden spike in the number of previously idle AAVE tokens that have now changed addresses. This indicated that addresses that have held on to AAVE tokens at the start of the year were starting to let go as the price of the tokens has seen over 70% decline in the last 180 days. 

Source: Santiment

In addition, as noted by Santiment in its report, it is true that “ in a speculative market like crypto, top holders are still dictating where prices are moving next.” However, increased whale holdings for AAVE tokens have had little impact on price.

A look at the exchange flow balance since the beginning of the year showed that more AAVE tokens had left exchanges than entered. At each point that this metric posted a negative value, the AAVE token declined in price.

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Furthermore, at press time, the exchange flow balance stood at -18.8k. This meant that although the price was up by 8% in the last 24 hours, a retracement was imminent. 

Source: Santiment

Furthermore, although the whales hold a significant supply of AAVE tokens, data from Santiment revealed that, on a 7-day average, the whale transaction count index has declined since April.

For transactions above $100k, the whale transaction count registered some highs at the beginning of the year. However, this plummeted by mid-march. A correction was spotted at the end of March but was only transient due to the bloodbath of April.

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Since then, this has only registered low figures. At press time, this metric stood at 81. For transactions over $ 1 million, a similar progression was followed. At the time of writing, this stood at six.

Source: Santiment

According to the report, the other two crypto-assets that have been widely accumulated include SAND and LRC. Curiously, ADA, YFI, and DOGE were spotted as the leading assets that whales are running away from.

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Aave

AAVE Slowly Climbs To $109, Resistance At $113 Looms

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AAVE Slowly Climbs To $109, Resistance At $113 Looms

AAVE shows that the price is steadily rising as the coin’s bullish streak makes noise in the market.

  • AAVE price is raging bullish today with its steady climb to $109 resistance level
  • The coin faces hurdle at $113.50
  • AAVE/USD pair support is spotted at $97.91

The AAVE/USD price saw a boost of 12.02% compared to the figures yesterday as the market spikes to $109.99 from yesterday’s $105.

AAVE Resistance Spotted At $113.50

According to CoinMarketCap, AAVE has plunged by 0.18% as it trades at $109.87 as of this writing. The token’s price faces resistance at $113.50 with the bulls trying to breach the target level. On the flip side, the market has spotted some support at $97.91 as the bulls were able to restore the token’s price up after it dropped below this range.

AAVE is currently trading right above the $109 zone, as the bulls managed to push the price up. The 24-hour TVL for the coin sits at $508 million with a current market cap of $1.53 billion.

AAVE’s daily chart shows a dramatic and robust upswing seen in the past 24 hours. In fact, the market was able to reach a high of $113.50 before it faced some gigantic selling pressure that caused the price to plunge. However, the bulls were able to push the price shooting above the $97.91 market, and it now trades near its ATH of $109.99.

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AAVE Tries To Retest Above Resistance

The market is largely optimistic and is set to skyrocket in the near term as the bulls are able to push the price up. MACD looks extremely bullish with it line overshooting the signal like. RSI also shows its bullish steak as it trades at 62.50.

With the bulls pushing the price up after every dip, AAVE price shows that the market is swerving for an uptrend. It’s all looking positive for Aave with the coin trading within the range of $109.99 to $113.50, with the bulls not able to move past $113.50. Currently, the market has locked in some strong foothold at $97.91, which acts as support line.

AAVE price is looking positive with bulls pushing the price higher despite the massive selling pressure. More so, the market is hoping to retest at the key resistance of $113.50 but the bulls will have to regroup to enable a breach above that level.

  AAVE total market cap at $1.5 billion on the daily chart | Source: TradingView.com    Featured image from Yahoo Finance, Chart from TradingView.com

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AAVE: Aftermath of GHO stablecoin approval and V3 kick off

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AAVE: Aftermath of GHO stablecoin approval and V3 kick off

Developments around the open-source DeFi protocol, AAVE looks like a non-stop activity. In July, the community agreed to launch GHO, its own stablecoin. Now, AAVE has proposed something new.

This time, the community has requested its voting and governance community to approve retroactive funding for AAVE version 3 (V3).

So how much is AAVE looking at, and what exactly is the project trying to achieve?

Breaking it down

According to the request, the funding aims to strengthen the Aave ecosystem and develop essential features on the AAVE V3.

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DeFi aggregator, DeFillama data showed that the V3 has been performing well of late.

Source: DeFillama

Based on the information, AAVE V3 had contributed $1.67 billion to the overall Total Value Locked (TVL) of AAVE.

This supply has helped the Aave protocol hold onto its third position with TVL now worth $7.42 billion. 

With seven chains on it, it may seem that AAVE’s recent activities may potentially displace Lido Finance [LDO] off the second position.

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At press time, AAVE had registered a 5.20% increase in TVL over the last 24 hours. What else did AAVE mention with regards to the recent funding request?

Aave proposed that its Decentralized Autonomous Organization (DAO) approve separate sums of $15 million and $1.6 million for work incurred and audit, respectively, to facilitate the development.

The proposal noted the advancement and success of V3 would be an excellent development for other versions inclusive. 

Layer-two (L2) network improvement, high efficiency, and isolation modes have been the major factors for the protocol. According to the proposal, integrating these features will allow seamless use of different networks on the protocol system. Aave said, 

“V3 has also seen demand for stable Efficiency Mode (eMode), with proposals for new asset listings such as this one for FRAX continually taking advantage of Aave V3’s capital efficiency. In light of recent significant crypto market events, risk management features such as isolation mode have also proven to be prescient”

As for the DeFi ecosystem, Aave believes retroactive funding and V3 advancements would drive innovation. At press time, there had been some response from the Aave community, with many responding positively to the request with signs of live funding very likely. 

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In light of the request, AAVE had already gained 10.31% from its previous day’s price. Another thing that followed the update was a massive volume influx—a 137.98% uptick in the last 24 hours. 

Manisha is a News Editor at AMBCrypto. With a Master’s degree focused on Mass Communication, Manisha is good at multitasking with an eye for detail. She is fascinated by new, emerging technologies and her interests lie in the regulatory implications of such tech.

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Here’s what you might be missing about AAVE’s latest ‘push’ on the charts

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Here’s what you might be missing about AAVE’s latest ‘push’ on the charts

AAVE’s price action has finally broken through its descending resistance after struggling to find some directional footing over the last few days. The move came after the protocol announced the launch of a new liquidity mining program for Optimism.

The announcement about the Optimism liquidity mining program may have promoted a shift in investor sentiment in favor of the bulls. This, because Optimism is one of the most popular Ethereum Layer 2 scaling solutions which facilitates large volumes.

According to its website, Optimism’s on-chain value is north of $800 million. In fact, it also claims to have helped save more than $1 billion in gas fees.

The @OptimismFND Liquidity Mining program is live on Aave V3

The program will run for 90 days with a distribution of 5M OP to the Aave Protocol’s Optimism Market users

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Claiming support for rewards will be active soon!

Feeling Optimistic 👻

— Aave (@AaveAave) August 4, 2022

AAVE’s price action

The impact on AAVE’s price action means investors expect the move to boost demand for the cryptocurrency. Although AAVE managed to break through its descending resistance, it still should contend with friction at its press time level near the $101 price range.

This, because the same level pictured resistance in the second half of July.

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Source: TradingView

AAVE’s upside over the last 24 hours was courtesy of the buying pressure that had been building up since 2 August. This was around the same time that the MFI pivoted due to accumulation, and the same case goes for the RSI. However, it is unclear whether the latest upside will last.

AAVE’s currently bullish performance might be short-lived unless the market manages to maintain its favorable bullish sentiments. This, because the supply held by top addresses metric registered a 0.41% drop in the last 24 hours, indicating that whales have been cashing out.

The upside was also backed by a smaller increase in active addresses, compared to the previous spike in addresses on 3 August.

Source: Santiment

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AAVE’s whale transaction count also recorded an increase in activity in the last two days and this backed the latest upside.

However, whale transactions have been within an average daily count. Nothing out of the ordinary in terms of buying pressure.

Source: Santiment

Conclusion

Although AAVE’s price uptick reflected the Optimism announcement, its on-chain metrics explain the lack of strong momentum. Its short-term upside might thus be limited.

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Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael’s writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.

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