Cryptocurrency investors are puzzled as major sales of DeFi tokens like Uniswap and Aave are happening, raising alarms about a possible change in the market. Whales made large profits from these tokens when their prices went up, which now alarms people who think a bigger market drop might happen. Strong technical patterns show that if current support and resistance levels stay firm, recovery could be close.
Whales Offload Massive AAVE and UNI Holdings
Over the past two days, crypto whales have unloaded significant positions in AAVE and UNI tokens, cashing in millions. Four major wallet holders reportedly offloaded over $12.7 million worth of these tokens, with much of the activity happening on Binance. This kind of movement often signals that big players anticipate market turbulence ahead.
A whale, likely controlling wallets 0x991 and 0x970, transferred 41,469 AAVE tokens worth $14.7 million to Binance. This sale reportedly secured a staggering profit of $11.3 million, representing a 330% return. Despite this large sell-off, the entity still holds 28,639 AAVE tokens worth $10.2 million, reflecting unrealized gains of nearly $11.86 million.
Similarly, another whale, 0x1d1, deposited 131,633 UNI tokens worth $1.81 million to Binance. The transaction reportedly brought in $733,000 in profits, reflecting a 68% gain in just three months. Meanwhile, whale 0xcc0, linked to the Sigil fund, moved 145,824 UNI tokens worth $2 million, netting $696,000 in returns over a short 2.5-month period.
These profit-driven exits by major whales highlight a short-term bearish sentiment in the DeFi space, warning traders to prepare for possible market corrections.
Uniswap Holds Strong Support at $12.82
Uniswap is still trading over $12.82, even though some investors have sold their shares recently. On the last day of trading, UNI lost 1.08% value, selling for $13.36, while its overall market size is now $8 billion. The shape of its price movements now shows a downward triangle, hinting it might move sharply up or down next.
Technical indicators show a crucial RSI divergence that supports a possible bounce-back within the triangle pattern. If Uniswap breaks upward, the token could target $18.82, representing an upside potential of 40%. However, if it loses support at $12.82, the price might test the 200-day exponential moving average at $10.76, putting further downward pressure on the market. Investors remain cautious, eyeing the $12.82 level closely as the token navigates these turbulent waters.
AAVE eyes $530 target after pullback
AAVE, like Uniswap, is caught in a critical tug-of-war between bullish recovery and bearish correction. Trading at $357 after a 3.46% intraday pullback, AAVE is testing the supply zone between $371 and $383. This resistance level marks the neckline of a rounding bottom reversal pattern, a critical area for determining its next direction.
AAVE price risks dropping back to $334 when the 23.6% Fibonacci level acts as a ceiling that prices can’t climb above. If prices hold steady, AAVE could surge past $400 and reach an ultimate price target of $530. Right now, AAVE is at a critical point—it only needs one good move to change the market’s perception of it.
Conclusion
Big investors selling AAVE and UNI show they’re watching their steps with the market, so we could see prices drop soon. While they’ve dropped recently, both coins show they can bounce back by holding onto important price levels.
For Uniswap, holding the $12.82 support could spark a rally, while AAVE’s challenge lies in overcoming the $371-$383 resistance. The next few days will be critical as traders watch these levels closely and assess whether the broader crypto market is indeed shifting.
FAQs
Why are whales selling Uniswap and Aave tokens?
Whales are selling Uniswap and Aave tokens to secure significant profits after recent price increases.
How much profit have whales made from selling AAVE and UNI?
In the past two days, whales have collectively earned over $12.7 million from selling AAVE and UNI tokens.
What is the significance of the $12.82 support level for Uniswap?
The $12.82 support level for Uniswap is crucial for preventing further price declines and indicating potential recovery.
