- AAVE whale’s $2.46M transaction triggers price drop.
- High trading volume accompanies AAVE’s price correction.
- Indicators suggest that negative market sentiment in AAVE may be fading.
The cryptocurrency industry is buzzing with the news of a massive AAVE whale completing a $2.46 million transaction. The renowned whale, “0x5a80,” recently sent shockwaves across the market by moving 38,000 AAVE tokens out.
This whale, which has amassed a whopping $17.2 million in AAVE during the last 24 hours, now has a $31.8 million total. However, the euphoria swiftly changed to worry when the price of AAVE fell after the whale’s ceaseless collection efforts roughly 10 hours ago.
Note that whale"0x5a80" transferred 38,000 $AAVE ($2.46M) out 30 mins ago. The 38,000 $AAVE is being transferred to exchanges through multiple addresses.https://t.co/5QXEwc7nC6 pic.twitter.com/XKe0B0y0NE— Lookonchain (@lookonchain) June 26, 2023
Consequently, AAVE’s price plummeted from a 30-day high of $76.13 to a low of $64.77. As of press time, the bearish trend remained in charge of the AAVE market, resulting in an 8.87% drop to $65.57.
During the correction, the market capitalization fell 8.91% to $946,290,817, but the 24-hour trading volume climbed by 58.11% to $481,148,803. This higher trading volume might be linked to panic selling by investors alarmed by the abrupt decrease in price.
AAVE/USD 24-hour price chart (CoinMarketCap)
With a level of 0.14 and going south, the Chaikin Money Flow (CMF) motion in the AAVEUSD price chart suggests a negative market mood. This movement shows that traders are selling their AAVE holdings, resulting in a decline in demand and a possible price drop.
Nonetheless, its movement in the positive region and the stochastic RSI reading of 2.60 (oversold) suggests that the bearish momentum may be receding. This anticipation is because the CMF motion and the low stochastic RSI reading indicate that the negative momentum is waning and buyers are entering the market.
This action may result in a price trend reversal or, at the very least, a short pause in the downward path.
Bearish momentum in the AAVEUSD price chart is decreasing, with a Relative Strength Index (RSI) rating of 56.67 tilting parallel with the horizontal. This RSI score of 56.67 shows a reasonably neutral sensation since it is close to the halfway threshold of 50.
AAVE/USD price chart (source: TradingView)
In conclusion, the AAVE market experienced a significant price drop due to a massive whale transaction, causing panic selling. However, signs of a possible trend reversal and buyer activity indicate potential recovery.
Disclaimer: The views, opinions, and information shared in this price prediction are published in good faith. Readers must do their research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be liable for direct or indirect damage or loss.
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