As a seasoned crypto investor with a knack for spotting undervalued DeFi tokens, I find myself intrigued by the current state of Aave (AAVE). Amidst the market volatility, AAVE has shown resilience and potential for growth, much like a phoenix rising from the ashes.
As the crypto market becomes more unpredictable due to the anticipated lack of significant interest rate reductions by 2025, DeFi tokens are garnering attention. With most DeFi tokens showing signs of downturn, Aave stands out as a potentially explosive cryptocurrency.
The technical data remains above important thresholds, indicating significant upward growth potential for AAVE. Moreover, robust foundations are drawing numerous ‘whales’ due to President-elect Trump’s pledge of favorable regulations in 2025.
AAVE Prepares Extended Run amid Market Volatility
In recent days, a strong wave of pessimism has swept across the cryptocurrency market. Over the last 24 hours, Aave has experienced a drop of 8.32%. Remarkably, despite this heavy bearish impact, Aave’s DeFi token manages to maintain a market capitalization of approximately $5.1 billion.
At the moment, the value of the Aave token is being traded at approximately $340, marking a significant increase of 106% in the last 30 days. On a 4-hour timeframe, the price pattern suggests a bearish collapse within a previously stable range.
Testing the central pivot point at $329.68, the range breakdown indicates a recovery of approximately 5.61%, given that it formed a 24-hour low at $322 in the current market.
After swiftly moving away from its previous equilibrium point, the Aave token manages to bypass a potential re-evaluation at the established support trend line. Yet, this upward momentum could be followed by another assessment at the support trend line.
As the 4-hour Relative Strength Index (RSI) approaches the region where it suggests assets are overbought, this indicates a rise in selling activity. Consequently, when the RSI dips below 30%, the probability of a price reversal becoming more likely increases.
Whale Adds More AAVE at Discount Prices
During the recent crash, Whale capitalized on discounted prices to accumulate more Aave tokens.
Even though earning a profit of $15.3 million, the whale opted to extend its investment in Aave by increasing its long position. Over the last 10 hours, this whale has obtained 3 million GHO tokens through borrowing and spent approximately $3.18 million on GHO and WBTC to acquire a total of 9,702 Aave tokens.
The whale, who has already made a substantial $15.3 million profit, is increasing its investment in $AAVE as the price decreased today!
Over the last 8 hours, a whale has taken out a loan of 3 million units of $GHO and used 3.18 million dollars, both in $GHO and $WBTC combined, to purchase 9,702 units of $AAVE.
Since October 13, the whale has purchased 96,800 $AAVE at an average…
— Spot On Chain (@spotonchain) December 19, 2024
Starting from October 13, the Whale has acquired a total of 96,800 Aave tokens, with an average cost of around $183.4 per token. This amounts to approximately $17.8 million in value. As a result, their unrealized profit now stands at an impressive $15.31 million, representing an increase of 86.2%.
AAVE Price Targets
As a researcher studying DeFi tokens, if the wider market exhibits recovery or stabilization, I anticipate that the token will sail through calmer seas for continued growth. If there’s a bullish surge from the support trend line, it seems plausible that the price could challenge the pivot resistance level at approximately $434.39.
Conversely, should Bitcoin fall below $100k once more, it’s probable that the Aave coin will drop beneath its support trendline, potentially leading to an extended downtrend. Noteworthy support levels for this DeFi token, if it falls below $300, are at $285 and $263.
Summing up, Aave (AAVE) stands firm in the Decentralized Finance (DeFi) sector, even amidst current market turbulence. Moreover, with a large investor, often referred to as a ‘whale’, consistently adding to its holdings, it’s reasonable to anticipate that Aave will maintain its upward trend.
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2024-12-19 14:34