- Whale accumulation has returned after a period of market weakness.
- Buyer strength now outweighs selling pressure across spot markets.
- AAVE faces a decisive test between renewed upside and key support levels.
Aave (AAVE) is once again at a critical juncture after a failed breakout attempt and a short period of consolidation. The DeFi token recently pushed toward the $180 level but faced rejection, sending price back toward the low $170s. While the pullback may look discouraging at first glance, on-chain and market data suggest the retracement may have opened a new accumulation window — particularly for large holders.
At the time of writing, AAVE is trading near $173, down modestly on the day, as traders assess whether renewed demand can support another upward move.
Whale Activity Signals Renewed Conviction
One of the most notable developments is the return of whale participation. Since the beginning of the year, large spot orders in AAVE had been virtually absent, reflecting a period of reduced risk appetite and broader market softness.
That trend shifted this week when on-chain trackers flagged a sizable purchase from a previously inactive whale. The investor acquired over 11,000 AAVE, valued at roughly $1.9 million, after staying on the sidelines for nearly a month. The wallet now holds more than 355,000 AAVE, despite carrying substantial outstanding debt.
Historically, whale accumulation during market weakness often points to longer-term confidence rather than short-term speculation. While not a guarantee of price appreciation, such behavior tends to precede periods of heightened volatility.
Buyers Regain Control Across the Market
Beyond individual whale activity, broader demand indicators are also improving. Buyer-versus-seller strength metrics show buyers currently dominating trading activity, suggesting sentiment has shifted in favor of accumulation rather than distribution.
This trend is reinforced by consistently positive spot taker volume over the past week. When taker volume remains skewed toward buyers, it often reflects urgency from participants willing to enter positions at market price — a sign of strengthening conviction.
That said, sellers have not disappeared entirely. Market conditions remain competitive, and price action suggests both sides are actively defending key levels.
Technical Levels Define the Next Move
From a technical perspective, AAVE has reclaimed its short-term trend support after moving above the 20-day exponential moving average near $168. This level now acts as an important downside buffer.
However, momentum indicators show mixed signals. A recent bearish crossover in momentum oscillators highlights lingering downside risk, even as price attempts to build higher lows. The next major test lies overhead, where a sustained move above resistance could open the door toward the mid-$190s — an area that previously capped rallies.
Failure to maintain current demand, on the other hand, could send AAVE back toward the $168 support zone.
Also Read: Litecoin and AAVE Flash Early Bullish Signals — Is a Breakout Coming?
AAVE’s recent pullback appears to have attracted renewed interest from both whales and spot buyers, placing the token at a decisive inflection point. If demand holds and resistance levels are cleared, another upside attempt could follow. For now, traders are watching closely as bulls and bears battle for control of the next trend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
