Bullish Aave Targets $230 Despite Whale Deposits to CEXs

Aave (AAVE) recently broke out of a symmetrical triangle pattern, suggesting bullish momentum. The cryptocurrency surpassed the $155-$160 resistance range, a key level defined by converging trendlines. Analyst World Of Charts observed the breakout after the token consolidated within this structure, connecting lower highs and higher lows. The breakout signals a continuation of the upward trend, with the projected target price exceeding $230. 

This represents a potential 53.21% surge from the breakout level. The analyst highlighted Aave’s recent price action, noting a sharp movement toward the projected targets. According to the report, the token delivered over 35% profit within a few hours following the breakout. 

$Aave #Aave So Far So Good Moving Towards Targets Sharply 35%+ Profit Within Few Hours This Is How We Can Catch Perfect Entries After Years Spending On Charts https://t.co/OqvBoEkeCb pic.twitter.com/d1qg4A9HTm

— World Of Charts (@WorldOfCharts1) November 7, 2024

The analyst attributed this success to identifying optimal market entries, emphasizing the value of years spent analyzing charts to refine trading strategies. Despite these gains, market dynamics are shifting as whales transfer significant holdings to centralized exchanges.

Potential Selling Pressure

Large AAVE holders have moved substantial amounts to various platforms, raising concerns about potential sell-offs. Notably, the wallet 0x7634 transferred approximately $3.39 million worth of AAVE, equivalent to 25,790 tokens, to MEXC. Another significant transfer came from Cumberland, depositing $1.29 million worth of AAVE (10,000 tokens) to OKX. These movements suggest a possible increase in selling activity.

Further contributions to this trend include two major transactions to Binance. Wallets 0x790c and Galaxy Digital transferred $1.04 million and $1.02 million, respectively. Combined, these transactions moved 15,719 tokens to the exchange. Transfers to centralized platforms often signal impending sales, which could impact AAVE’s price trajectory in the near term.

Price Aligns with Increased Volume

Even though there is the worry about whale movements, AAVE‘s price action was pretty good enough. The token has gained over the past 24 hours, trading at $184.46 at press time. Its weekly performance shows a 21.10% increase. The 24-hour trading volume has surged to $935.9 million, reflecting strong investor interest. 

The bullish breakout has taken many traders for a ride. This combination usually means there is the possibility of sustained uptrend.

The fantastic rise of Aave from a major resistance level is an indication of its appreciable bearish pressure. The above $230 forecast entails more upside as shown by lifting trading volume and encouraging technical arrangements. But the whale movements to CEXs adds a note of caution in the process for the overall market.

These transfers worth millions of dollars may imply selling pressure with a propensity of causing volatility of the prices. At the moment, AAVE’s price looks bullish and traders should keep an eye on the on-chain statistics and general sentiment to check if it has started changing.