AAVE Price Rally Backed By Whale Buying and Onchain Expansion

The cryptocurrency market is still recovering from the major sell-off witnessed during July and early August. Amid the correction, the crypto-leading platform AAVE recorded a massive liquidation of $260 Million

Cryptocurrency market uncertainty didn't stop AAVE as it surged 8% to $125 during Tuesday's trading session.

This buying momentum is fueled by whale accumulation and on-chain expansion, suggesting a potential for higher recovery.

AAVE Price Rally Backed By Whale Buying and Onchain Expansion

The cryptocurrency market is still reeling from the major sell-off that occurred during July and early August. In the thick of this correction, Kaiko analytics revealed that crypto-leading platform AAVE faced a massive liquidation of $260 Million, as reported by Kaiko analytics. Usually, such a large liquidation bolsters a prolonged correction, but AAVE price showcased an immediate recovery, highlighting the investors' interest in its discounted value.

This accumulation thesis gained further traction as the Onchain data tracker showcased a recent accumulation of 31,407 AAVE ( valued at $3.92M) by two whales. Despite a 28% weekly growth in AAVE, these heavy transactions hint at the potential for a further rally.

2 whales bought 31,407 $AAVE($3.92M) in the past 4 hours!

Whale”0x3737″ holds 3.56T $PEPE($28.4M) with a profit of over $28M on $PEPE.

He spent 813 $ETH($2.18M) to buy 17,690 $AAVE at $123 in the past 4 hours.https://t.co/zoKrgBuOYu

Whale”0x1D15″ withdrew 13,717 $AAVE($1.73M)… pic.twitter.com/UOnnH9RU88

— Lookonchain (@lookonchain) August 20, 2024

Moreover, this recovery coincides with a remarkable surge in active address activity. Data from intotheblock shows the metric surging to a three-month high, indicating growing user engagement and network activity. This increase in active addresses suggests more participants are entering the market, potentially fueling further price momentum for AAVE.

Key Resistance Breakout Hints Prolong Recovery Ahead

In the last two weeks of recovery, AAVE price has bounced from $90 to $125, registering a 28% growth. This recovery, backed by increasing volume, highlights the traders' conviction to enter a long trader.

The AAVE price is up 8% today to give a decisive breakout from the $118 resistance. The Average Directional Index (ADX) uptick to 19% accentuates the recovery is in the early stage and could drive an extended recovery.

If the daily candle closes, the buyers could gain suitable support to lead a 23% rally to target $153.

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