Aave [AAVE], which just saw a 10% price surge after a major sell-off. What’s driving this sudden price action, and what can we expect next?
On September 4th, the entire cryptocurrency market took a hit, with Bitcoin dropping below the $57,000 mark. But despite this, Aave managed to defy the odds with a surprising rebound.
So, what triggered this? A large AAVE holder, or ‘whale,’ recently dumped over 17,000 AAVE tokens, worth a whopping $2.16 million. The kicker? This whale took a massive loss of $2.14 million.
This whale originally bought these tokens back in March 2021, at an average price of $246 each. Fast forward to now, and they sold at a crucial support level of $118.
Despite fears of a sell-off, AAVE showed resilience. The price bounced back to around $130, defying expectations of further declines. And here’s where it gets interesting.
In the past 24 hours, AAVE’s trading volume spiked by 85%, signaling increased trader activity. At the same time, AAVE’s Open Interest jumped by 15% over just four hours. This indicates growing interest among traders, even amid the price fluctuations.”
Now, let’s talk technicals. AAVE is currently trading above the 200 Exponential Moving Average, a sign that it’s in an uptrend. However, it’s been stuck in a tight range between $118 and $134 for the past few days.
The key resistance level to watch is around $135. If AAVE breaks through and closes above this level, we could see a push towards $146. But remember, resistance levels can also trigger price reversals, so keep an eye out.
On the flip side, major liquidation levels are at $125 on the downside and $131.5 on the upside. If AAVE drops to $125, around $1.46 million in long positions could be liquidated. But if it climbs to $131.5, roughly $1.19 million in short positions might get wiped out.
So, what’s next? The overall crypto market is down by 1.2%, with heavyweights like Bitcoin, Ethereum, and Solana also seeing declines. But for AAVE, the bulls seem to be in control for now.”
Will AAVE break through resistance and continue its upward trajectory, or will the bears take over? Only time will tell.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your research before investing in any cryptocurrency.
