Whales are accumulating strongly, AAVE faces resistance at 352 USD

The price of AAVE has recently experienced notable fluctuations influenced by a series of rumors related to World Liberty Financial. Specifically, on August 23, this token plummeted sharply by 8% from 385 USD to 339 USD and is currently continuing to slide down by 6% to 330 USD.

Although selling pressure stemming from market sentiment has weakened prices in the short term, on-chain and technical data indicate that AAVE's long-term growth structure is still being maintained. This means that the recent correction is primarily temporary, while the main trend is still aimed at higher targets in the near future.

Exchange reserves decline, whales accelerate accumulation

In the past 30 days, AAVE reserves on exchanges have decreased by 4.33%, leaving only 5.4 million tokens. This means that approximately 244,400 AAVE have been withdrawn from the exchange, corresponding to a value of nearly 83.3 million USD at the current price of 341 USD/token. This is a clear signal that the accumulation trend is prevailing over selling pressure.

At the same time, data from Nansen shows that whale wallets have also increased their holdings by 13.49%, from 17,222 AAVE to 19,542 AAVE, adding an additional 2,320 tokens worth nearly 790,000 USD. The decrease in reserves on exchanges while large wallets continue to buy often reflects the confidence of well-capitalized investors, and this partly explains why the AAVE price drop due to the WLFI rumor is only temporary and has not caused a strong sell-off.

AAVE buyers in focus | Source: Nansen## On-chain metrics bolster confidence

An important on-chain metric to pay attention to is the age of the (Spent Coin Age), which reflects whether old coins are being brought into circulation – often seen as a signal of selling pressure. On August 23, a total of 46,600 AAVE was spent, but at the time of writing, this number has dropped to only 15,230 AAVE, a sharp decrease of 67%. This indicates that long-term investors remain calm, not rushing to offload even amid declining prices due to rumors.

AAVE sellers remain calm | Source: SantimentAdditionally, the heatmap by cost reinforces a positive outlook. At the 339 USD level, there are currently about 143,470 AAVE being held, while near 337 USD is another accumulation cluster with 135,820 AAVE. These demand clusters explain why the 339 USD mark acts as a significant reversal point, and even if a new pullback occurs, this area still has the potential to maintain strong support.

Furthermore, the 272.9 USD zone is recorded as the largest accumulation range and is also the final support level. Unless this price level is breached, the bullish structure of AAVE will basically remain intact.

Key resistance and support zones | Source: Glassnode## Price action: Growth signals not broken

In August, AAVE experienced a strong growth phase, rising from 244 USD at the beginning of the month to a peak of 385 USD on August 23, reflecting an increase of nearly 58%. Although it later faced correction pressure due to rumors related to WLFI, this token is currently fluctuating around 330 USD, indicating significant stability compared to the previous upward trend. This development shows that AAVE's upward trend has not yet been broken, while also reinforcing the belief that the current price range could serve as a springboard for a new upward movement if demand continues to be maintained.

According to technical analysis, the Fibonacci extension tool is targeting the next price increase at 430 USD, approximately 26% higher than the current level. To confirm this upward momentum, the price needs to close a daily candle above 371 USD. However, in the short term, the 350 – 352 USD range is emerging as a strong resistance area, as it is both a previous accumulation point and indicated as a significant barrier by the cost basis heat map.

AAVE 1-Day Price Chart | Source: TradingViewOn the contrary, traders need to pay special attention to the invalidation levels. If the price plummets below 275 USD, AAVE will break the largest cost base cluster at 272.9 USD, which means that the bullish structure may be reversed in the short term.

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