AAVE Whale Momentum Points to an Emerging Trend Reversal Opportunity

• AAVE whale accumulation during dips signals strong confidence in long-term growth potential.
• Aave’s total active loans jumped from $9B in May 2021 to $27B today, reflecting growing demand.
• The 100-week SMA around $187 may act as resistance, and the 200-week SMA near $137 serves as support.

Aave (AAVE) is showing resilience for a potential reversal, with the price consolidating in a narrow range. The token is currently trading at $184.19, with the value showing signs of stability over the last 24 hours.

However, the crypto analyst, Lookonchain, revealed that as the broader crypto market slipped into a pullback, AAVE whale 0xE9D0 quietly ramped up accumulation. Over the past five days, the wallet purchased 40,433 AAVE worth roughly $7.1 million, a move that has drawn attention as the whale continues buying heavily during moments of market weakness.

Source: Lookonchain

Across the last three years, 0xE9D0 has strategically amassed a total of 292,838 AAVE valued at $54.5 million. With an average entry price near $170, the long-term holder is now sitting on approximately $4.6 million in unrealized gains, a pattern that analysts suggest reflects strong conviction and a bullish outlook despite ongoing market volatility and short-term fluctuations.

Also Read: Aave Surge Predicted: 16% Rise Rally Ahead

Aave’s Lending Boom Could Attract Smart Investors

Moreover, another crypto analyst, Sōka_Data, highlighted that the decentralized finance protocol Aave (AAVE) has seen much larger numbers of active loans than in May of 2021; in fact, the total lending amounts increased dramatically from $9 billion to $27 billion. Notably, despite its market capitalization dipping slightly from $4.6 billion to $4 billion, there appears to be greater demand to borrow money in the space.

Source: Sōka_Data

In fact, there are hopes held out in the divergence that can be found in the works of analysts and crypto experts who believe that there are less risky alternatives based not on technical analysis but on the strong fundamental base of Aave. In terms of growing use and adoption, the protocol remains one of the strongest players in DeFi.

AAVE Technical Outlook Suggests Cautious Optimism

The price chart of AAVE illustrates that after reaching its peak at $350 in late 2024, the price embarked on a sharp decline. Now, it has retraced from its low of $137. The moving average ribbon looks bearish, as the shorter SMAs are below the longer SMAs, and the 100-week SMA at $187 acts as a resistance, and the 200-week SMA at $137 can potentially form strong support.

Source: TradingView

Momentum indicators reveal that the RSI stands at 39.66, indicating that the currency has slightly moved from the oversold zone but is still in the bearish region. The MACD is still in the bearish zone, as the MACD line is below the signal line. Generally, the current trend of the AAVE currency indicates that it has experienced a short-term rebound.

Also Read: Aave Rallies After Archax Listing With Price Aiming Toward $220–$300 Targets