15 million USD poured into AAVE - A turning point for the altcoin that has been "asleep" for many days?

After being rejected at the level of 331 USD five days ago, Aave (AAVE) has struggled to maintain its upward momentum. At the time of writing, this altcoin is trading around 298 USD.

In the context of the crypto market temporarily cooling down, investors – especially whales – have seized the opportunity to accumulate and strengthen their strategic positions.

Whales gather over 50,000 AAVE worth 15 million USD

According to data from Onchain Lens, a newly created whale wallet has conducted a large transaction, purchasing 50,000 AAVE, equivalent to about 15.07 million USD. This is a signal of strong confidence in AAVE's recovery potential after the adjustment period.

Source: On-chain LensTypically, when whales enter the market with large buy orders, this move is often interpreted as a potential bullish signal, while also reinforcing the optimistic sentiment of investors.

Data from CoinGlass also shows that AAVE has recorded a negative net cash flow in the spot market for four consecutive days – meaning that the outflows exceed the inflows. Specifically, at the time of writing, AAVE's net cash flow stands at -613,000 USD, a clear signal indicating that the accumulation trend is still occurring strongly.

Source: CoinGlass## Whales dominate the AAVE derivatives market

Not only in the spot market, the activities of whales are also clearly reflected in the derivatives market. According to data from CryptoQuant, the average order size in AAVE futures contracts has surged, indicating that whales are continuously engaging in large transactions for 7 consecutive days.

Source: CryptoQuantThe trading volume of AAVE's derivatives also recorded an impressive increase, rising by 48.9% to 829.78 million USD, while the open interest (OI) increased by 2.6% to 624 million USD. This is a sign that the capital flow and participation level in the futures market for this altcoin are expanding.

Source: CoinGlassHowever, data from CoinGlass shows that the Long/Short ratio of AAVE remains below 1, fluctuating around 0.94. This means that 51% of futures traders are holding Short positions, indicating that a pessimistic sentiment still prevails. In other words, even though whales are actively participating, the majority are still betting on the possibility of AAVE's price decreasing again.

Source: CoinGlass## Technical Indicator: AAVE is approaching the breakout point

Although the bears seem to be dominating, the technical data provides a positive signal for AAVE.

The Stochastic RSI indicator has recently created a bullish crossover. This is typically a signal that buying momentum is being activated and has the potential to extend the upward trend in the short term.

However, for this scenario to be confirmed, the RSI index of AAVE also needs to form a bullish crossover. If this scenario occurs, buying pressure will be strengthened, opening up the opportunity for AAVE to retest the 336 USD area - the nearest important resistance level.

On the contrary, if the upward momentum weakens and the sellers regain control, AAVE may turn to decrease towards the 296 USD area, which is considered a notable short-term support level.

AAVE 1-Day Price Chart | Source: TradingViewThe strong return of whales with accumulated amounts of tens of millions USD is creating new momentum for Aave. However, with the Short side still dominating the derivatives market, the price of AAVE is still facing a fierce tug-of-war.

In the short term, the direction of AAVE will depend on whether the buying force is strong enough to overcome the selling pressure. If market conditions are favorable and technical signals are confirmed, AAVE has the potential to break out to the 336 USD level. Conversely, a slight correction to 296 USD will be a scenario that needs to be considered.

Justin