AAVE price displays a modest downtick of 0.83% during Sunday’s low volatility trading. The pullback temporarily stalled the current recovery but allowed buyers to replenish the bullish momentum before the next leap. Amid the formation of a bullish reversal pattern, the recently recorded whale buying positions AAVE price for a sustained rally.
AAVE Price Targets $200 as Whale Buying Spree Aligns with Fibonacci Support
According to Lookonchain analytics, a crypto whale recently bought 31,173 AAVE tokens worth around $4.8 million and deposited them into Aave. Shortly after, the whale borrowed around 2.7M GHO stablecoin from the Aave protocol and swapped them for USDC.
These stablecoins were deposited into the Coinbase exchange to acquire more AAVE, projecting a bullish outlook for this smart money. The use of GHO, a stablecoin associated with Aave, further showcases confidence in the Aave ecosystem.
A whale is going long on $AAVE.
The whale bought 31,173 $AAVE($4.8M) 9 hours ago and deposited it into #Aave.
Then he borrowed 2.7M $GHO from #Aave and swapped it to $USDC.
And deposited the $USDC into #Coinbase to buy more $AAVE.
Address:https://t.co/s8cD7dHTb5 pic.twitter.com/WuVkTIbj38
— Lookonchain (@lookonchain) October 13, 2024
The supply distribution metric from Santiment indicates that large holders with wallet sizes between 1 million to 10 million AAVE initiated a buying spree in August. This accumulation has now reached 4.17 million AAVE, highlighting strong whale activity.
This trend suggests increasing confidence among large investors in AAVE’s price potential, possibly hinting at further upside momentum in the market.
AAVE Supply Distribution | Santiment
AAVE Hint Major Reversal Pattern Breakout
Following the early October sell-off, the AAVE price managed to stabilize above $135 support since last week. This support is reinforced by both the 50-day exponential moving average and the 38.2% Fibonacci retracement level, providing a solid foundation for a potential price reversal.
The 38.2% FIB is typically seen as an ideal pullback zone for buyers to regain control after a period of exhausted bullish momentum. The recent reversal has uplifted asset 12% up to trade at $152.5 and formed a bullish reversal pattern called a double bottom.
The chart setup resembles a ‘W’ letter and indicates a renewed bullish momentum for a breakout opportunity. If the pattern holds true, the AAVE price rally could breach the $154.8 neckline and drive a post-breakout rally to $180, followed by $200.
AAVE/USDT – 1d Chart
Alternatively, if the AAVE buyers fail to sustain a neckline breakout, the sellers could revert the price lower and seek support at the $115 level.
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