Whale Accumulation of AAVE Signals Potential for Price Recovery Amid Recent Market Dip

• The resurgence of interest among Smart DEX traders and whales marks a pivotal moment for AAVE, as they capitalize on recent price dips.

• This strategic accumulation trend suggests both confidence in AAVE’s potential recovery and a shift in market sentiment.

• As noted by SpotOnChain, a prominent whale has amassed a staggering 96,800 AAVE, signifying a strong bullish outlook.

AAVE sees renewed buying interest from whales and Smart DEX traders as price drops create opportunities, hinting at potential market recovery.

Smart DEX Traders and Whales are Buying the Dip

Recent Cumulative activity indicates a significant re-engagement of whales and Smart DEX traders. Having previously sold holdings at peaks around $368 and $381, these investors re-entered the AAVE market after prices dipped, collectively investing over $3.2 million in a single day. This trend underscores a shift towards opportunistic buying.

One notable player, designated ‘0xe823’, successfully secured $118,000 in profits which indicates a strategic foresight, achieving returns that multiplied their initial investment three to four times. Another trader, ‘0xfcc5’, reinvested $1.4 million, reporting returns of 3.2 to 3.3 times, and now controls 963,000 AAVE valued at an impressive $331.60 million.

These actions indicate a robust market sentiment, with traders like ‘0xb040’ increasing their positions by purchasing $679,000 worth of AAVE after previously realizing profits at a rate of 3.8 times their initial investment. This behavior reflects a coordinated effort to leverage the recent price dip and signals a broader belief in AAVE’s recovery potential.

AAVE’s Prediction and Profitability of Addresses

The recent trading activities around AAVE suggest that the buying momentum from Smart DEX traders and whales is pivotal for a potential price recovery. Notably, AAVE is trading above a critical Fair Value Gap (FVG) at $300, which has historically served as a significant support zone prior to price surges. The sentiment surrounding AAVE remains cautiously optimistic.

If the coin can sustain its position above the FVG, it could pave the way for a substantial upward trend. Such movement would validate the current bullish sentiment and might drive prices towards previously uncharted territories.

As buying volumes continue to rise, market analysts believe that AAVE could be gearing up for a significant uptick, with the MACD indicator showcasing a bullish crossover, further supporting the likelihood of an uptrend. Should AAVE successfully maintain its position over the FVG, reaching the $500 milestone in 2025 could become an achievable target.

Furthermore, WLD’s year-to-date profitability data reveals that 23.29% of addresses are currently profitable, while 11.61% remain ‘out of the money.’ This efficiency suggests a favorable outcome for sustained investment in AAVE as it contends with market dynamics.

As of late, there has been a notable increase in profitable addresses by 10%, bringing the percentage of profitable addresses to 33.72%. This development signifies a robust support zone around AAVE’s current price level of $340.71, illustrating sustained investor confidence in the asset.

If these trends continue, AAVE’s potential to surge past $500 by 2025 could become increasingly feasible, bolstered by positive holder sentiment and diminishing selling pressures.

Read Aave’s [AAVE] Price Prediction 2024-25