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AAVE price is among the few altcoins that are noting a bullish momentum at the moment despite the broader market’s bearish cues.
However, the altcoin is facing potential bearishness from one of the most important groups of crypto investors – the whales.
AAVE Could Be Prone to Selling
The changing sentiments of the crypto whales could impede the AAVE price rise. These large wallet holders command a considerable influence over the price action. Their accumulation leads to gains while selling results in declines.
The addresses holding between 10,000 and 100,000 AAVE have been consistently accumulating since late July. However, in the last 48 hours, they have sold over $5.25 million worth of AAVE.
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While the amount is nearly insignificant in comparison to their holdings, it managed to halt the rally over the last three days.
Nevertheless, the altcoin does have the potential to counter this potential bearishness. The correlation between AAVE and Bitcoin has dropped to a low of 0.03. This means that the altcoin has nearly dissociated itself from the king crypto.
Given that Bitcoin’s price was slightly bearish at the time of writing, this dissociation would benefit AAVE. The same could also minimize the impact of selling as the altcoin moves against the broader market cues.
AAVE Price Prediction: Rise Ahead
AAVE price trading at $105 is moving within a broadening ascending channel. This pattern is characterized by diverging trendlines that form a wedge shape, with higher highs and higher lows. It typically signals a potential reversal or continuation of the current trend.
The altcoin confirmed the pattern during the end-July rally, strengthening it. A breakout is expected at $124, which could lead to a 30% rally, targeting $163.
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However, for the same to occur, the AAVE price would need to flip $116 into support. Since these levels have been tested as resistances in the past, it’s possible the altcoin might fail to breach them. This would invalidate the bullish thesis, continuing consolidation within $116 and $89.