Will AAVE Price Delay $200 Breakout as Whale Begins Profit-Taking?

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As a seasoned crypto investor with a knack for recognizing patterns and market trends, I must admit that the recent events surrounding AAVE have piqued my interest. The bullish momentum seen earlier in the week was undeniably exciting, but the whale sell-off and the bearish reversal from the flag pattern hint at potential challenges ahead.

On Tuesday during U.S trading hours, the crypto market experienced a significant increase in buying activity that propelled Bitcoin‘s price beyond $70,000. In line with this bullish trend, Aave’s price also rose, accompanied by many other major altcoins, indicating a revived optimism for the Q4 rally. Yet, recent large-scale selling by ‘whales’ and strong resistance levels above Aave’s current price indicate potential obstacles that might postpone Aave breaking through the $200 mark.

Presently, AAVE’s price stands at approximately $150.33, representing a minimal decrease of 0.61%. As per data from Coingecko, the market capitalization of this asset amounts to around $2.25 Billion, and its 24-hour trading volume is roughly $209.15 Million.

Will AAVE Price to $200 Be Delayed as Whale Starts Profit-Taking?”

Based on a tweet from EmberCN, it’s reported that a significant investor, often referred to as a “crypto whale,” purchased 160,710 AAVE tokens at around $89 each during the summer months (June-August). More recently, this investor moved 19,592 AAVE tokens, valued at roughly $3.02 Million, to the crypto trading platform Binance, suggesting they are cashing out part of their substantial holdings.

The massive selling indicates that the biggest investor might be planning to decrease their involvement in AAVE, possibly due to a predicted reversal or lack of significant price action in the immediate future. Typically, when whales sell, it’s often seen around market peaks and negative market sentiments, which could potentially postpone an asset’s recovery momentum.

Currently, a significant investor, often referred to as a ‘whale’, retains approximately 141,118 units of AAVE, which translates to a staggering value of around $21.78 million in today’s crypto market.

Will AAVE Price Delay $200 Breakout as Whale Begins Profit-Taking?

AAVE Price Analysis: Flag Reversal Hints Prolong Correction

Over the past six weeks, the price of AAVE has been sideways, with a slight downtick in the daily chart. This consolation resonating within two converging trendlines indicated the formation of a bull-flag pattern. 

According to theory, the chart displays an upward trend shaped like a ‘Pole’ formation, which is followed by a brief downturn marked by two sloping lines that form a ‘flag.’ At present, the price of AAVE seems to be indicating a bearish shift from the upper line of this pattern, suggesting another bear phase within the flag’s structure.

After a reversal, there’s a potential for this asset to drop by about 12.5%, which might take it back to test the existing downward trendline, thus extending the ongoing period of consolidation.

Will AAVE Price Delay $200 Breakout as Whale Begins Profit-Taking?

Instead, if there’s a possible break above the current trendline, it suggests that the existing upward trend is likely to persist further.

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2024-10-30 00:32