AAVE Price Eyes $150 Despite Million in Liquidation, Will Bulls Make it?

AAVE price outperforms the crypto market uncertainty by an 8% jump to $125 during the Tuesday trading session. The buying momentum can be attributed to whale accumulation and on-chain expansion, projecting the potential for higher recovery.

AAVE Price Rally Backed By Whale Buying and Onchain Expansion

The cryptocurrency market is still recovering from the major sell-off witnessed during July and early August. Amid the correction, the crypto-leading platform AAVE recorded a massive liquidation of $260 Million, according to Kaiko analytics. While such liquidation typically bolsters a prolonged correction, AAVE price sparked an immediate recovery, indicating the investor’s interest in its discounted value.

This accumulation thesis gained traction as the Onchain data tracker showed a recent accumulation of 31,407 AAVE ( worth $3.92M) by two whales. Despite a 28% weekly growth in AAVE, these heavy transactions hint at the potential for further rally.

2 whales bought 31,407 $AAVE($3.92M) in the past 4 hours!

Whale”0x3737″ holds 3.56T $PEPE($28.4M) with a profit of over $28M on $PEPE.

He spent 813 $ETH($2.18M) to buy 17,690 $AAVE at $123 in the past 4 hours.https://t.co/zoKrgBuOYu

Whale”0x1D15″ withdrew 13,717 $AAVE($1.73M)… pic.twitter.com/UOnnH9RU88

— Lookonchain (@lookonchain) August 20, 2024

Moreover, the recovery coincides with a notable surge in active address activity. Data from intotheblock shows the metric surge to a three-month high, indicating growing user engagement and network activity. This increase in active addresses suggests more participants are entering the market, potentially fueling further price momentum for AAVE.

Active Addresses | Intotheblock

Key Resistance Breakout Hints Prolong Recovery Ahead

Amid the last two weeks’ recovery, the AAVE price bounced from $90 to $125, registering a 28% growth. This recovery, backed by increasing volume, highlights the trader’s conviction to enter a long trader.

The AAVE price is up 8% today to give a decisive breakout from the $118 resistance. The Average Directional Index (ADX) uptick to 19% accentuates the recovery is in the early stage and could drive an extended recovery.  If the daily candle closes, the buyers could gain suitable support to lead a 23% rally to target $153.

AAVE|USDT – 1d Chart

On the contrary, altcoin has departed from fast-moving exponential moving averages (EMA) such as 20 and 50. This often indicates an over-extended rally, which needs a short correction to recuperate the bullish momentum.

Therefore, the AAVE price may revert from the $132 resistance and revisit the $110 floor.

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