AAVE Price Hits 3-Year High: Whale Accumulation and Market Activity in Focus
In the past day, the price of AAVE (AAVE) has increased by 0.74%, reaching its highest level since September 2021. The activity of the Decentralized Finance (DeFi) token has increased significantly, and the accumulation of AAVE whales has added new liquidity to the coin. So, as the DeFi industry picks up steam, will AAVE be able to maintain this momentum? Of course, it is not possible to give a clear answer to this question.
When the year began, AAVE was trading below $100. However, after an almost 311% increase, the token has soared above $350, the greatest figure in more than three years. Interest in DeFi tokens has been reignited by this spectacular surge. Mean Dollar Invested Age (MDIA) is one factor contributing to the price growth of AAVE, according to Santiment. The majority of cryptocurrency holders are likely holding their assets dormant in their wallets when MDIA rises, which can impede price growth. A decreasing MDIA, on the other hand, indicates that tokens that had been inactive are now making a comeback, frequently indicating heightened market activity and possible price growth.
On-Chain Data Signals Strong Whale Activity: AAVE Targets $400+
On-chain data indicates that AAVE’s MDIA has drastically decreased, as can be seen above. In the event that important players, such as crypto whales, continue to transition from latent inactivity to active trading, this might push the altcoin’s price much above $400. Additionally, an examination of the AAVE balance of addresses reveals that cryptocurrency whales are still purchasing the altcoin. $5.14 million and between 1 million and 10 million tokens were in the wallets of AAVE addresses as of December 1. The number has now risen to 5.40 million, meaning that during the past 11 days, crypto whales have bought 260,000 tokens in total.
AAVE is trading at a greater price than the Ichimoku Cloud position on the daily chart. A flexible technical indicator, the Ichimoku Cloud provides traders with an easy-to-understand representation of levels of support and resistance. The price of a coin above the cloud usually indicates solid support for an upward trend. It implies that the value of AAVE may keep increasing, with $420 as a potential target. The DeFi token may drop to $260 if whale accumulation stops, though, since this bullish momentum may stall.
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