In the world of cryptocurrencies, Aave (AAVE) has been making headlines with its recent attempts to break through the $70 resistance level. However, despite a strong bullish rally, it has encountered a formidable obstacle, leading to questions about its future direction.
One intriguing development that caught the attention of market observers is the activity of a large player, often referred to as a whale. The whale deposited a substantial amount of 44,956 ETH equivalent to $73.5 million into Aave and simultaneously borrowed 2,088 BTC approximately $58.3 million.
The BTC was then exchanged for ETH and redeposited into Aave as tweeted by Lookonchain, a market analyst. Such strategic moves by whales can significantly influence market dynamics and leave analysts speculating about potential impacts.
We noticed a whale is long ETH/BTC trading pair.
— Lookonchain (@lookonchain) October 9, 2023
The whale deposits $ETH into #Aave and borrows $BTC, exchanges $BTC for $ETH, and deposits $ETH to #Aave again.
The whale deposited a total of 44,956 $ETH($73.5M) to #Aave and borrowed 2,088 $BTC($58.3M).https://t.co/JMXDE8UiwL pic.twitter.com/s6HfVXPSHz
Aave’s recent price action saw a double rejection at the $70 resistance level over the past 72 hours, indicating a persistent bearish market structure in the higher timeframes. Meanwhile, Bitcoin briefly touched the $28,000 mark before retracing to $27,800.
The Relative Strength Index (RSI) signaled a loss of bullish pressure after a robust rally from the $61 support level, with the RSI dropping below the neutral 50 mark, suggesting growing selling pressure. If the selling pressure continues, AAVE could retest the $61 support level in the coming days.
However, there is potential for a positive turnaround if Bitcoin manages to surpass the $28,000 level. This could trigger a new wave of bullish sentiment across the cryptocurrency market, with AAVE buyers aiming to turn the $70 level into a support zone. If successful, this could shift Aave’s market structure from bearish to bullish on higher timeframes, potentially paving the way for gains in the range of $75 to $80.
As Aave navigates this critical juncture, its future trajectory will likely be influenced by a combination of broader cryptocurrency market dynamics and the strategic moves of significant players. The $70 resistance level remains a key focal point, and the outcome will be closely watched by the crypto community.
