Key Takeaways:
- AAVE rises nearly 16% in a week as Bitcoin’s rally lifts the broader crypto market.
- Whale-linked wallets moved 15,953 ETH to Aave and borrowed $15.4 million USDT, hinting at a strategic DeFi play.
- Technical indicators show bullish divergence in RSI and a potential MACD crossover.
- A weekly close above $155 could confirm a breakout and trigger stronger upside momentum.
AAVE, one of the leading decentralized finance (DeFi) protocols, is showing strong bullish momentum, rising nearly 16% over the past week. The broader cryptocurrency market has entered a bullish phase, largely driven by Bitcoin’s recent surge, which has provided the momentum needed for altcoins like AAVE to rebound and post notable gains.
However, the token’s price action is not solely a reflection of market-wide sentiment. Behind the scenes, significant on-chain activity points to renewed institutional or whale interest in the DeFi protocol, adding fuel to its upward trajectory.
ETH Whale Deposits to Aave, Borrows Big in USDT
According to data from Lookonchain, a mysterious whale or institution recently executed a sizable transaction involving Ethereum and Aave. Just hours ago, six wallets, likely controlled by the same entity, withdrew 15,953 ETH worth approximately $26.16 million from the centralized exchange OKX. The Ethereum was then deposited into Aave, where the wallets proceeded to borrow 15.4 million USDT.
That borrowed USDT was subsequently deposited back into OKX. This strategic movement suggests a calculated DeFi play, possibly to leverage liquidity or yield opportunities. Such transactions often precede heightened volatility and, in many cases, price movement in the related asset.
AAVE Prepares to Break Out of Multi-Year Range
From a technical perspective, AAVE is forming a structure that resembles a previous accumulation-to-breakout pattern observed between 2022 and 2024. During that time, the token ranged between $50 and $114 before rallying sharply to $460. Each interaction with the $50 support level triggered rebounds in the Relative Strength Index (RSI), suggesting a strong buyer presence at those levels.
Currently, the token’s RSI has broken its long-standing downtrend and is now displaying bullish divergence, a classic sign of potential upward movement. The MACD, which had remained below the zero line, is now testing it from beneath, an early indication that a trend reversal could be on the horizon.
The key level to watch moving forward is $155. A weekly close above this resistance zone could confirm the bullish breakout and accelerate AAVE’s momentum significantly. Such a move would mark a shift in market sentiment and potentially open the door to a sustained rally.
With whale accumulation, favorable technical indicators, and a broader market tailwind, Aave appears to be gearing up for a significant breakout. The coming days and weeks will be critical as the token tests crucial resistance levels and investors look for confirmation of a new bullish phase.
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