Aave Plans Chainlink Integration, Sees Increased Whale Activity, and Recovers After a Sell-Off

Aave is thinking about integrating Chainlink's Smart Value Recapture (SVR) oracle to bring back profits from Maximal Extractable Value (MEV)

Aave, a decentralized finance (DeFi) lending platform on the Ethereum blockchain, is considering integrating Chainlink's Smart Value Recapture (SVR) oracle to return profits from Maximal Extractable Value (MEV) to its users.

Aave's plan is to share 40% of these profits with users to enhance the platform's financial health. The SVR will work together with existing Chainlink Price Feeds to capture liquidation profits while keeping standard price data available. This plan is subject to approval by the Aave community. Initially, Aave wants a profit split of 65% for Aave and 35% for Chainlink, changing to 60% and 40% after six months.

The platform has seen a significant increase in whale activity, with 3,310 transactions over $100,000, marking the highest activity since 2022. For instance, Blockchain Capital transferred 16,964 AAVE tokens, valued at around $5.04 million, to FalconX, in their first AAVE move in months. Despite this sale, they still hold 216,000 AAVE tokens, valued at about $67.12 million, indicating their continued confidence in the AAVE token's future.

According to analysts, tracking such whale activities can aid in predicting market trends, hinting at possible positive movements for the AAVE token.

After a small sell-off, AAVEUSD has recovered more than $100 and is currently trading above both short-term (34 and 55 EMA) and long-term moving averages. The price is around $377.87, having recently hit a low of $271.

From a technical perspective, if AAVE closes below $125, it would indicate bearish sentiment. Immediate support is around $335, with further support levels at $300, $270, $250, and $200 if selling pressure continues. On the upside, resistance is near $400, and if this level is crossed, it could indicate minor bullish momentum with potential targets of $435 or $485.

Investors seeking entry points may consider buying on dips around the $300 mark, using a stop-loss at around $250 and aiming for a target price of $435 to position themselves for potential gains.