AAVE Plummets to $173! Is a Whale’s $1.9M Bet the Start of a Rebound?

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After a period of consolidation, AAVE tried to break out but got rejected at $180, then slumped back to $169. It’s like the market was on a diet and suddenly decided to snack on a bunch of $180s. 🍕📉

At the time of writing, Aave [AAVE] traded at $173, down 2.32% on the daily charts. After AAVE cooled down, it created a buying window, especially for large entities. Like a buffet that’s only open for whales. 🐋🍽️

AAVE whales signal a market return

Since the start of 2026, AAVE has hardly recorded any large whale orders. Spot Average Order Size data from CryptoQuant showed zero large orders since the 1st of January. Whales have been taking a vacation, leaving the market to fend for itself. 🏖️

This indicated a significant scale-back from whales, as they stepped back from the market. This coincided with a period of prolonged market weakness. Like a group of investors who’ve all decided to take a nap. 😴

However, market sentiment among whales has shifted, and on-chain monitors observed one whale purchase. According to Onchain Lens, a whale bought 11,089 AAVE valued at $1.9 million after being dormant for a month. That’s like a goldfish buying a yacht. 🐟💰

With the addition, the whale holds 355,093 AAVE, worth $59.15 million, and has $30 million in debt. When whales accumulate during a period of weakness, it signals strong conviction as they anticipate another leg up. Like a gambler betting on a dice roll. 🎲

Demand is recovering across the market

Besides the whale comeback, buyers have returned across the market. Buyer’s vs. Seller Strength indicators on TradingView showed sellers were overwhelmed by buyers. It’s like a party where everyone’s wearing a “I’m the boss” shirt. 🎉💼

At the time of writing, the buyer’s strength rose to 80.82, while the seller’s strength dropped to 19.18, indicating newfound demand in the market. Sellers are now the underdogs, and the underdogs are getting cozy. 🦊

Although sellers remain active in the market, buyers have shown more aggressiveness. At the same time, the altcoin’s Spot Taker CVD has remained green throughout the past week. Green light for buyers, red light for bears. 🚦

A positive Taker CVD suggested that buyers have mostly dominated the market, a clear sign of rising market demand. This leaves the market at a critical point, awaiting the next major move. Like a thriller where the plot twists are just getting started. 🎬

Is AAVE stable enough for a sustainable breakout?

AAVE showed bullish momentum, jumping above its short-term moving average, EMA 20, at $168 as buyers entered the market. At the time of writing, AAVE was testing the EMA50 at $274; a flip of this level will validate the altcoin’s upward momentum. Like a seesaw with a very determined rider. 🪜

However, the downside strength remains elevated, especially as the Stochastic Momentum Index (SMI) fell to 64 after a bearish crossover. Bears are still flexing their muscles, but the bulls are holding their breath. 🐻🔥

Such market conditions indicated a fierce battle between bulls and bears for control of the market. Thus, the next move depends on which side overwhelms the market. Like a game of chess where everyone’s using a different set of rules. 🏰♟️

Thus, if the newfound demand, especially from whales, holds, the altcoin’s upside momentum will continue, flip $184, and target $194, where it faced rejection. Like a rollercoaster that’s determined to go up… or down. 🎢

However, if bears retake the market and overwhelm the rising upside demand, the altcoin will seek support at $168. A familiar spot, but not exactly a vacation destination. 🏝️

Final Thoughts

  • AAVE slipped 2.32% but held above the short-term moving average EMA20, signaling rising bullish momentum. Like a toddler learning to walk-wobbly, but determined. 🧸
  • A whale bought 11,089 AAVE valued at $1.9 million after a month of dormancy. That’s like a superhero saving the day, but with crypto. 🦸♂️⚡

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2026-01-17 02:20