The crypto market shows a neutral outlook during Tuesday’s U.S. market session as Bitcoin seeks stability above $100k. Outperforming the market consolidation, the AAVE price records a massive surge of 21% to $366, backed by increasing whale activity. The rally assisting in the formation of a massive reversal pattern hints at the potential for a higher rally.
According to Coingecko data, the AAVE coin holds a market cap of $5.5 Trillion, while the 24-hour trading volume is at $2.9 Billion.
Key Highlights:
- The AAVE price is 22% away from the challenge of the key neckline resistance of the rounding bottom pattern.
- The 20-day Exponential moving average stands for immediate support for buyers amid occasional pullbacks.
- The $450 stands as the key resistance level in AAVE coin recovery.
Aave Whale Transactions Reach Highest Levels Since 2022
Aave, one of the leading decentralized finance (DeFi) protocols, is experiencing renewed interest from large-scale investors, or “whales.” Data from IntoTheBlock reveals that the past week saw an impressive 3,310 transactions exceeding $100,000 in value, marking the highest weekly volume of such transactions since 2022.
This surge in activity underscores heightened whale participation, signaling growing confidence in Aave’s ecosystem. The ongoing recovery backed by whale accumulation has often led to a prolonged uptrend.
AAVE Price Eyes $850 with Rounding Bottom Reversal
In the last three weeks, the AAVE price witnessed an upright rally from $151 to $365, registering a growth of 140%. The recovery trend managed to reclaim key horizontal chart levels such as $197, $261, and $350.
Daily chart analysis shows the recovery trend develops a key reversal pattern called the rounding bottom. The chart setup resembles a ‘saucer,’ which indicates a major trend reversal as the price passes through 3 key phases, i.e., a downtrend, a long consolidation, and sustained recovery.
A sharp uptick in key daily EMAs (20, 50, 100, and 200) accentuates the high-momentum rally, suitable for the next breakout. With sustained buying, the AAVE price could rally another 22% to breach the neckline resistance at $448.
A potential breakout will further accentuate the buying pressure to target the $850 barrier, indicating a possible growth of 88%.
Also Read: Bitcoin Price Rallies on Whale Buying Spree; Is $120K Imminent?
