AAVE Whales Accumulate $62M Worth of Tokens Despite Bearish Market Sentiment

Waves of significant market volatility have seen many crypto assets move significantly in either direction almost at random. In this context, Aave (AAVE) has been gaining significant attention from long-term holders, investors, and whales.

Crypto whales have been on a buying spree, accumulating millions of dollars' worth of AAVE tokens in recent days. According to crypto expert Ali, crypto whales purchased an impressive $62 million in AAVE tokens over the last three days.

In addition to this massive accumulation, blockchain transaction tracker Lookonchain highlighted a single whale accumulating 11,663 AAVE, valued at $3.93 million. These substantial purchases have sparked speculation among traders, presenting an opportune moment to buy AAVE tokens.

However, intraday traders appeared to be betting heavily on the short side, taking advantage of the prevailing market sentiment. According to Coinglass, bulls were over-leveraged at the $316, $312, and $300-levels, where they held over $7.90 million in long positions.

On the other hand, short-sellers were over-leveraged at the $320, $327, $340, and $345-levels, with over $21.33 million in short positions. This indicated a strong presence of short-sellers, suggesting the potential for selling pressure and further price decreases.

Despite the significant accumulation by whales and investors, the token's price struggled to gain momentum due to the broader market sentiment. Major cryptocurrencies, such as Bitcoin (BTC) and Ethereum (ETH), exhibited sideways movement over an extended period.

At the time of writing, AAVE was trading at around $320, with a modest price increase of 0.45% over the last 24 hours. However, during the same period, the token garnered substantial attention from both traders and investors, resulting in a notable 70% increase in trading volume compared to the previous day.

According to AMBCrypto's analysis, AAVE has been moving within a parallel channel pattern, with upper and lower boundaries at $384 and $285, respectively, over the last three months. Based on its recent price action and the prevailing market sentiment, AAVE appeared to be headed towards the support level of $285.

Interestingly, despite a bearish market outlook, AAVE was still trading above the 200 Exponential Moving Average (EMA) on the daily time frame at the time of writing. This indicated that the asset remained in an uptrend on the higher time frame.

Moreover, according to crypto expert Insomniac, on-chain data suggested that the $343 and $365-levels faced selling pressure, indicating a supply zone that could be crucial for further price movements. A breakout beyond these barriers could propel AAVE significantly on the charts.