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One massive whale action shook the $AAVE market. On-chain trackers alerted that an unknown wallet dumped a huge AA position. The whale sold about 230,350 $AAVE units, which amounted to about 38 million dollars. This abrupt departure forced the price of AAEE to plummet by several hours by reducing it to $158.
High-Conviction Sell Confirmed on-Chain
OnchainLens and Lookonchain blockchain data validate the trail of the transaction. The whale changed AAEE to stETH and WBTC, indicating a rotation to perceived safer or more liquid assets. The trade recorded a loss of up to $13.75 million. This move indicates a rush and not profitability and creates panic in the market.
The time of the selloff coincides with the increased tension within the $AAVE DAO. Discussions on interface fees, protocol control, and tokenholder incentives at the community level persist in coming to a head. The lack of governance usually dismays short-term confidence. Big holders will be more likely to liquidate on the loss of transparency, and this whale seems to have made a move.
Liquidations and Momentum Selling
The high-paced seller enhanced downward movement. Short-term liquidations and stop losses ensued with $AAVE breaking down to important intraday levels. A decline of 10 percent in a brief period indicates narrow liquidity in those price areas. The traders moved rapidly when volatility shot across DeFi tokens.
Although it dropped drastically, buyers soon re-emerged in the area around the 160 mark. This zone was support in the short run. Other traders considered the action to be a flush due to liquidity and not a structural failure. The initial shock was followed by stabilized price action on the spot demand.
The fundamental metrics of $AAVE are up to date. The GHO stablecoin has recently hit another all time high of 350 million. Efforts to development $AAVE V4 are ongoing even before releases are scheduled towards the end of the year. Who-whale exits affect the price in the short-term, though the fundamentals of protocols still play in favor of long-term applicability.