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The digital assets market experienced a significant surge in buying momentum on Tuesday, pushing Bitcoin well past $73,000.
This uptrend has catalyzed notable increases in the altcoin market, with many tokens, including AAVE, indicating renewed momentum ahead of the much-anticipated Q4 2024 rally.
However, the recent whale dump, coupled with AAVE facing substantial overhead resistance, suggests a potential retracement for the asset.
Whale profit-taking dents AAVE’s uptrend
Crypto enthusiast CashyCat revealed that an investor who purchased 160,710 AAVE assets at $89 per coin between June and August has started trimming his balance.
A whale that scooped up 160,710 AAVE at $89 between June and August just transferred 19,592 AAVE ($3.02M) to Binance. With 141,118 AAVE left ($21.78M), they’re sitting on unrealized profits of $9.31M—talk about a big catch! 🐋💰debank.com/profile/0xd282…
The latest transfer saw the whale moving 19,592 AAVE tokens (worth around $3.02 million) to Binance.
The massive sell-off after the latest gains shows the large-scale investor could be preparing to reduce losses due to potential reversals or consolidations in the upcoming sessions.
Whales often reduce their exposure once the asset tops and before bearish moves, possibly postponing continued price recoveries.
Meanwhile, the investor still holds 141,118 tokens, worth approximately $21.78 million at the current AAVE price.
The substantial holdings could reflect the whale’s confidence in AAVE’s long-term performance.
IntoTheBlock data shows most AAVE investors are profitable at current prices.
Source – IntoTheBlockWith 80% of holders being whales, a profit-booking wave by these participants could amplify AAVE’s declines.
Nevertheless, the current crypto market outlook suggests that potential downsides would be short-lived.
Analysts remain confident about new all-time highs for cryptocurrencies before 2024 ends.
The digital coin industry sees amplified optimism, with crypto ETF inflows and US election volatility opening the doors to $80K for BTC.
Proponents believe the upcoming US elections would be crucial in shaping the future of crypto.
The favorite (according to Polymarket), Donald Trump, has been pro-crypto during the campaigns, promising to promote the sector’s growth upon victory.
Renowned analyst Crypto Rover anticipates explosive moves from Bitcoin in the coming months.
#BITCOIN IS ABOUT TO EXPLODE.🚀
AAVE price outlook
The altcoin trades at $151 after slight gains of 1.06% in the past day.
Source – CoinmarketcapAAVE has seen notable downward pressure over the past few sessions – down over 3% on its daily chart.
Meanwhile, the digital coin has consolidated within the past few weeks.
The sideways actions happened within two uniting trendlines, printing a bull-flag setup.
AAVE signals bearish reversals from the setup’s upper boundary, suggesting another bearish stance inside the flag formation.
Thus, the alt could lose 12% to hit the trendline’s support, translating to continued consolidation.
Contrarily, breaching the upper boundary would extend the current uptrend.
A breakout amidst broad market rallies could propel AAVE toward the sought-after $200 mark. That would lead to an over 32% surge from current values.
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