AAVE Price Rally to $200 Could Stall Amid Whale Sell-Offs and Resistance Levels

AAVE Price Rally to $200 Could Stall Amid Whale Sell-Offs and Resistance Levels

During Tuesday’s U.S. market session, Bitcoin saw a surge that took it above the $70,000 mark, sparking a wave of buying across the crypto sector. AAVE joined this bullish trend alongside most leading altcoins, suggesting a renewed confidence in the Q4 market rally. However, the AAVE price may face significant challenges as it attempts to break past the $200 threshold due to strong resistance levels and recent profit-taking from major holders.

Currently, AAVE is trading at $150.33, reflecting a slight decline of 0.61%. Data from CoinGecko places AAVE’s market cap at $2.25 billion, with a 24-hour trading volume of approximately $209.15 million.

Whale Activity and Potential Price Impact

A recent transaction reported by EmberCN shows that a crypto whale, who acquired a sizable 160,710 AAVE tokens at an average price of $89 each between June and August, has started to take profits. This whale recently transferred 19,592 AAVE—worth around $3.02 million—to Binance, potentially signaling a shift in sentiment. Such large-scale selling often aligns with peak market prices and can lead to a bearish outlook, potentially delaying AAVE’s anticipated recovery and upward momentum.

Despite this sell-off, the whale continues to hold 141,118 AAVE tokens, currently valued at roughly $21.78 million. Market watchers are concerned that further profit-taking from this holder could apply additional downward pressure on AAVE, limiting its progress toward higher resistance zones.

AAVE Price Analysis: Bull-Flag Pattern Indicates Potential Pullback

Over the past six weeks, AAVE’s price has trended sideways within a tight range, forming what appears to be a bull-flag pattern on the daily chart. Typically, this formation suggests an initial upward movement (the ‘pole’) followed by a temporary consolidation phase defined by downward-sloping trendlines (the ‘flag’). At present, AAVE appears to be experiencing a bearish reversal from the pattern’s upper trendline, signaling a potential downturn in the short term.

Should this reversal play out, the price could retreat by up to 12.5%, potentially testing the flag’s lower trendline and extending the ongoing consolidation. Conversely, a breakout above the upper trendline would signal a bullish continuation, aligning with the current market trend and potentially setting AAVE on a path to reclaim higher levels in the coming sessions.

While investor confidence in the crypto market appears renewed, AAVE’s trajectory will likely depend on how well it navigates these resistance levels and ongoing whale activity in the short term.