By Franklin Smith
While technical outlook reveals crypto’s performance and prevailing market sentiments, dip-buying at specific bottoms isn’t always as simple as most individuals think.
The latest Santiment report noted that buying low to sell high appears easy to practice. However, defining lows and highs within a volatile market remains challenging.
Whale Still Buying AAVE
Santiment’s data showed AAVE coins rank the highest in the top three digital tokens that crypto whales have bought since the market-wide slump began. It added the 10K – 1M address tier saw a massive accumulation surge.
Moreover, the category now accounts for 47.7% of AAVE supply holders. They held 42.3% of this supply before June 20. Meanwhile, a sudden 5% increase in one day (by the millionaire holders) brighten AAVE’s future projections.
What You Should Consider
While it’s notable that whales control more than 45% of the circulating AAVE coins, evaluating the previously inactive AAVE assets that have moved to addresses showcases something.
The past couple of days has seen a sudden surge in previously idle tokens that have changed wallets. That showed that addresses that maintained AAVE since the year started are now surrendering. That is after the alternative coin lost more than 70% within the past 180 days.
Moreover, as Santiment reported, top holders still dictate price actions in speculative markets such as the crypto. Nonetheless, surged AAVE whale holding had little effect on prices.
Evaluating exchange flow balances since the year started indicated that more tokens left exchanges and joined. AAVE price has declined whenever this metric revealed a negative reading.
Meanwhile, the exchange balance flow hovered at -18.8K during this publication. That meant an imminent retracement despite the 8% 24hr price surge. Moreover, though whales hold a substantial AAVE supply, Santiment data showed that whale transaction count metrics plummeted (since April) on a seven-day average.
For transfers beyond $100K, the whale transaction figures noted some peaks early in the year. Nevertheless, the count declined by mid-March. A retracement emerged as March ended, welcoming the April crypto bloodbath.
The index has presented lows since then. While publishing this blog, the metric hovered at 81. Moreover, transactions above $1 million followed similar progressions. While writing these lines, it stayed at six.
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