After a period of consolidation, AAVE attempted a breakout but was rejected at $180, then returned to $169.
At the time of writing, Aave (AAVE) was trading at $173, down 2.32% on the daily charts. Once AAVE cooled, it created a buying window, especially for larger entities.
AAVE Whales Signal Market Return
Since the start of 2026, AAVE has recorded virtually no large orders for whales. Average spot order size data from CryptoQuant has shown no large orders since January 1.
This indicates a significant decline on the part of the whales, as they withdraw from the market. This coincided with a period of prolonged market weakness.
Source: CryptoQuant
However, market sentiment among whales has changed and on-chain monitors have observed whale buying. According to Onchain Lens, a whale purchased 11,089 AAVE worth $1.9 million after being dormant for a month.
With this addition, the whale holds 355,093 AAVE, worth $59.15 million, and is $30 million in debt. When whales accumulate during a period of weakness, it signals strong conviction as they anticipate further upside.
Demand is picking up across the entire market
In addition to the return of the whales, buyers have returned to the market. Buyer strength versus seller strength indicators on TradingView showed sellers being overwhelmed by buyers.
Source: TradingView
At the time of writing, the buyer’s strength stood at 80.82, while the seller’s strength dropped to 19.18, indicating new demand in the market.
Even if sellers remain active on the market, buyers are becoming more aggressive. At the same time, the altcoin’s CVD Spot Taker remained green throughout the past week.
Source: CryptoQuant
A positive CVD Taker suggests that buyers have largely dominated the market, a clear sign of growing market demand. This leaves the market at a critical point, awaiting the next major move.
Is AAVE stable enough for a sustainable breakout?
AAVE displayed bullish momentum, surpassing its short-term moving average, 20 EMA, at $168 as buyers entered the market. At the time of writing, AAVE was testing the EMA50 at $274; a reversal of this level will validate the altcoin’s upward momentum.
However, downside strength remains high, especially as the Stochastic Momentum Index (SMI) fell to 64 after a bearish crossover.
Source: TradingView
Such market conditions indicated a fierce battle between the bulls and bears for market control. So, the next step depends on which side will overwhelm the market.
So, if new demand, especially from whales, continues, the altcoin’s bullish momentum will continue, reaching $184 and aiming for $194, where it was rejected.
However, if the bears take over the market and overwhelm the growing demand, the altcoin will look for support at $168.
Final Thoughts
- AAVE slipped 2.32% but held above the short-term moving average EMA20, signaling increasing bullish momentum.
- A wHale purchased 11,089 AAVE worth $1.9 million after a month of dormancy.
