AAVE Drops to $173 – Could a $1.9 Million Whale Purchase Signal a Rebound?

AAVE has recently experienced fluctuations, dropping to $173 after failing to break through the $180 barrier. However, a significant whale purchase valued at $1.9 million may indicate a potential recovery. As demand from buyers has been increasing, there could be an opportunity for a rebound if bullish momentum continues.

Key Takeaways

AAVE is currently trading at $173, showing a 2.32% decrease.
Whales have returned to the market with a notable purchase of 11,089 AAVE for $1.9 million.
Buyer strength is outweighing seller strength, indicating increasing market demand.
AAVE is testing significant moving averages, with potential targets at $184 and $194.
The outcome of the market largely depends on whether bulls or bears gain control.

AAVE Shows Bullish Momentum Amid Whale Comeback: Is $194 Target Within Reach?

Recent Market Movements

After a period of consolidation, AAVE attempted to break out but was rejected at $180, causing a decline to $169. At present, AAVE is trading at $173, reflecting a 2.32% dip for the day. This price decline has created a buying opportunity, especially for larger investors.

Whale Activity Indicates a Market Shift

Since the beginning of 2026, AAVE has not seen any major whale transactions, as large orders have not been recorded since January 1. This lack of activity suggested that whales were stepping back from the market during a time of prolonged weakness.

AAVE spot average order size

Source: CryptoQuant

However, there has been a notable shift in whale sentiment. On-chain data from Onchain Lens indicates a whale recently bought 11,089 AAVE, worth $1.9 million, after a month of inactivity. This whale now holds 355,093 AAVE, valued at approximately $59.15 million, despite having $30 million in debt. Such accumulation during periods of market weakness typically signals strong conviction and the anticipation of a bullish trend.

Growing Market Demand

In addition to whale activity, there is a resurgence of buyers across the broader market. According to TradingView's Buyer vs. Seller Strength indicators, buyers are currently overpowering sellers.

AAVE buyers seller strength

Source: TradingView

As of now, buyer strength has risen to 80.82 while seller strength has decreased to 19.18, indicating renewed interest from buyers. Although sellers remain active, buyers are demonstrating increased aggressiveness. Furthermore, AAVE's Spot Taker CVD has remained positive over the past week, reinforcing the notion of rising market demand.

AAVE spot taker cvd

Source: CryptoQuant

This positive Taker CVD indicates that buyers have predominantly dominated the market, suggesting that demand is on the rise. The market is at a crucial juncture, anticipating its next significant movement.

Assessing AAVE's Breakout Potential

AAVE displayed bullish momentum by surpassing its short-term moving average, EMA 20, at $168 as buyers started to engage. Currently, AAVE is testing the EMA50 at $274; successfully flipping this level could validate the altcoin's upward trend.

However, there remains a significant concern on the downside as the Stochastic Momentum Index (SMI) has decreased to 64 following a bearish crossover.

AAVE Stoch & EMA

Source: TradingView

These market conditions reflect a fierce contest between bullish and bearish forces vying for control. The forthcoming movements rely heavily on which side prevails. Should the newfound demand, particularly from whales, persist, AAVE could continue its upward momentum, surpassing $184 and targeting $194, where it has previously encountered resistance. Conversely, if bearish sentiment reasserts itself and overshadows the rising demand, AAVE may look for support around $168.

Conclusion

As the market brims with potential for an upward recovery, the actions of whales and the increasing buyer strength create an intriguing scenario for AAVE. Observers should watch closely for how the dynamics evolve in the coming days.