AAVE Price Eyes $140 as Whale Moves Hint at Breakout

Key Insights

• AAVE price was close to a diagonal breakout. The OBV nears a breakout alongside a surge in volume, suggesting a potential push price toward the $140 zone.
• AAVE crypto’s inflows and outflows are running simultaneously. About $148K was deposited into Binance while $98K was withdrawn from Uniswap.
• The ‘Aave Will Win’ proposal allows routing of fees from swaps and Horizon to the AAVE treasury, expanding the revenue streams.

Aave Protocol (AAVE) is a major player in decentralized finance (DeFi), built on the Ethereum (ETH) mainnet. The platform has been making major upgrades, with v4 as the latest version.

The altcoin is up by more than 6% in the past 24 hours following a major upgrade that looks to improve its revenue generation. Moreover, a spike in whale activity, though undefined, increased speculative trading in AAVE crypto.

Can AAVE price break past the diagonal resistance and reach $140 in this quarter amid an ongoing broader crypto market rebound?

AAVE Price Prediction: Can Volume Fuel a Breakout?

On the daily chart, AAVE price was struggling to break above the diagonal resistance, which was holding it below the $106 zone. Bulls were pushing the price toward this breakout, with On Balance Volume (OBV) showing similar behavior.

The OBV, currently at 25.2 million, was also attempting to surpass the descending resistance. In fact, the indicator had formed an inverted head-and-shoulders pattern, a bullish reversal signal. Daily trading volume was also surging, increasing the chances of a potential breakout.

If buying volume continues, the altcoin may break above the slanting trendline, putting $140 in sight. However, major psychological hurdles were at $120 and $130, which could be resistance to price appreciation. The $120 zone may initiate a correction, which would confirm the breakout upon retesting the breached level.

Conversely, failure to break past this slanting resistance would increase the potential to fall back to $80. A break and hold below $80 would invalidate the anticipated crypto market rebound, as it would mean bears have won the battle.

But why was the altcoin price action failing to break past this level despite increased smart money activity?

Assessing AAVE Crypto Whales’ Behavior

The answer to why AAVE price was stalling was simple. Whales were divided, meaning on-chain capital inflows and outflows were happening simultaneously.

As per Nansen AI, a whale on the Top 100 WETH Leaderboard opened a new position for 911 AAVE crypto tokens worth $98.57K on Uniswap.

This transaction was a few hours after $1.5 million AAVE was bought by two wallets. One of the wallets acquired 11,015 AAVE after swapping USDT while the other bought 5,000 AAVE tokens. Both swaps were made on CoW Protocol, indicating aggressive accumulation by bulls. This activity may have led to a 6% price increase over the past 24 hours.

The buying activity was more than selling. Among the sellers was a whale’s address under the name Token Millionaire, who moved 1.4K AAVE worth $148K to Binance. These transactions explained why the price action was struggling to break past the slanting resistance, as some traders were taking profits from the small rally.

Overall, the buyers dominated the net flow, purchasing over $1.6 million in AAVE compared to approximately $150K in selling volume. The buying was 10 times larger than selling.

AAVE Crypto Proposal To Boost Revenue

Additionally, AAVE crypto founder Stani Kulechov noted that the ‘Aave Will Win’ proposal had passed. This upgrade increased revenue by redirecting fees collected from the swap and Horizon to the AAVE treasury. Growing revenue means less supply, as the DAO uses proceeds to buy back AAVE.

Altogether, AAVE’s price action was nearing a breakout above the slanting trendline, which could set it on a path to $140. However, traders should be wary of bearish resistance, which could occur if the price fails to rise above the diagonal resistance.

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