• Sat. Mar 2nd, 2024

AAVE’s Sell Pressure Fades, But Can Bulls Capitalize?

Sep 18, 2022

AAVE ended a bearish week as the most large-cap assets battled downsides. Despite that, it remains the leading choice for bulls as the crypto world welcomes another week. Why? Let us check. AAVE’s downbeat performance within the past seven days led to plunges of approximately 18%.

That’s enough to attract inflows from market players hoping to capitalize on the weekly discounts. Meanwhile, this isn’t the only facet currently favoring a possible bullish pivot for the alternative tokens. While writing these lines, AAVE had its price actions wavering beyond the $77 support.

The support mark strengthens the chances of a bullish rebound within the upcoming week. AAVE’s Money Flow Index and the Relative Strength Index resorted to downsides over the week and appeared to show bearish strength slowdowns. Meanwhile, the price action reflected this outcome with brief recoveries during this publication.

Sentiment Shift

The highlighted observation indicated that investor sensation shifted, whereas on-chain metrics presented an accurate validation. The asset’s weighted sentiment recorded a swift surge since September 13, swaying in the positive area at this publication. That indicated that AAVE’s overall sentiment favored bulls.

The supply by the leading exchange address index recorded a sharp surge between September 13 and 15 before a quick pivot. That could signal that some large wallet investors are scooping the tokens and withdrawing the tokens from exchanges. Such a development highlights a bullish signal for the alt.

Also, the asset’s distribution indicated tapering out selling pressure. Addresses with 100,000 and 1M tokens accounted for the selling momentum within the past seven days. Nevertheless, outflows from these wallets tapered out within no time.

Wallets with over 1M AAVE tokens dominated the highest AAVE supply. These wallets have added to their holdings over the past five days. And that saw them curbing the selling pressure. That signals sentiment change.

Final Thought

The above metrics confirmed AAVE’s shifting price trajectory while highlighting a massive case for upside potential in the coming few days. Nevertheless, this anticipation doesn’t consider possible market changes. Therefore, the predicted outcome isn’t a guarantee.

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