A whale investor recently made headlines by earning $1.81 million through successful transactions involving the AAVE cryptocurrency.

This noteworthy event unfolded during a period of significant investment activity from August to November 2024, where the investor acquired a total of 43,885 AAVE tokens

A whale investor recently made a huge move by selling off nearly all of their AAVE tokens, realizing a profit of $1.81 million from the trade.

The transactions were part of a broader strategy to maximize returns through liquidity pools, with the investor depositing 2,347 AETH alongside the AAVE tokens.

The whale had been accumulating AAVE since August 2024, gradually purchasing 43,885 tokens at an average price of $145.9 per token. In total, the investor spent about $6.4 million on the AAVE tokens, engaging in several batches of buying activity.

The investor's actions were closely followed by market participants as AAVE's price stability, which saw it bouncing between $129 and $150, provided a favorable window for accumulation.

The batch of AAVE tokens was sold on March 20 at an average price of $183.27, securing a profit margin of about 28%.

Upon selling the 44,765 AAVE tokens, the total income generated was approximately $8.2 million, leading to a net profit of $1.81 million. However, had the whale sold at the peak price of nearly $390 in December last year, the potential profit could have soared to about $10.9 million, highlighting the extreme volatility and unpredictability of cryptocurrency markets.

A closer look reveals that the last tranche of AAVE tokens was acquired on November 27 at an average price of $134.74, while the first batch was purchased on August 23 at an average price of $156.77.

By mid-January 2025, AAVE's price started an upward trajectory that has seen it rise by 37% from around $129 to its current price of $181.37.

Alongside this growth, AAVE's market capitalization is currently set at $2.71 billion, although daily trading volume saw a 25% drop to $172.49 million compared to the previous day.

Despite this significant sale by the whale, optimism is building as traders keep an eye on technical indicators, specifically the technical resistance levels that could pose challenges to AAVE's further ascent.

The recent outflow of 44,765 AAVE tokens could threaten the ongoing bullish trend of AAVE.

Similar profit-taking usually ends in short-term corrections, according to the PnL chart from Spot on Chain.

Observing AAVE's technical indicators, the coin is testing resistance levels between $377 and $392. A recent bounce from these levels could indicate a weakening of the bearish trend that has characterized AAVE’s trade since January 2025.

The Money Flow Index (MFI) currently sits at 30.56, hinting that AAVE could soon experience an oversold condition. Should this occur, a movement above $200 would be a positive sign that the buying pressure is regaining momentum. However, if AAVE cannot hold on to the support level around $175, further downtrends could ensue.

In the wake of the whale's recent sell-off, the immediate price action of AAVE becomes crucial. While large holders of cryptocurrency, often called whales, do not single-handedly dictate market movements, their transactions can influence market sentiment and liquidity dynamics.

Looking ahead, if market conditions remain favorable, AAVE might recover into the $200 to $220 range. Nonetheless, the resistance area of $377 to $392 remains a significant hurdle that needs to be overcome in order for AAVE to continue its ascent. The cryptocurrency requires sustained volume and buying pressure to break free from its current downward trend.

In the broader market, assets like Cardano have seen growth, with prices climbing above $0.777, signaling potential bullish behavior that could positively affect market dynamics.

Meanwhile, other cryptocurrencies like SUI have bounced back, indicating a resurgence in investor interest.

As traders watch these developments closely, the stakes remain high in the cryptocurrency space, leaving investors to navigate the ongoing volatility and shifting trends.