can the altcoin survive the dump?

Aave is navigating turbulent waters at the moment, as big whales appear to be selling off their holdings during a period of downward pressure.

Over the last five days, Aave (AAVE) has faced a persistent decline and has seen five consecutive red candles on the daily chart since October 31.

Aave’s price began a downward trend after reaching its local high of $158 at the end of October, falling nearly 14% in the following days to its current level of around $129. Despite showing a slight recovery today, Aave is struggling to regain bullish momentum amid broader market volatility.

The broader market is showing some signs of recovery amid election-related events in the US, and Aave’s modest 1.1% gain today reflects this overall rise. However, without a decisive move above key resistance levels, Aave remains vulnerable to further declines.

One of the factors contributing to Aave’s decline is a series of massive sell-offs by major market players. Data obtained from Lookonchain shows that significant amounts have recently been transferred to exchanges by whales.

According to data from Lookonchain, wallet address 0x7634 withdrew approximately $3.39 million worth of AAVE and moved it to the MEXC exchange, signaling a potential sell-off.

Other notable transactions include a $1.04 million transfer to Binance, a $1.29 million deposit to OKX, and another $1.02 million transaction to Binance in the last 24 hours. These large transactions indicate that whales are reducing their Aave positions and contributing to downward pressure on the price of the asset.

Will AAVE survive the whale dump?

Aave is currently trading at $129.65, up 0.66% in the last 24 hours. The asset has fallen by 15.74% in the last seven days, dropping its market cap to $1.94 billion.

AAVE 1D graphic | Source: Trading Outlook

On the daily chart, DMI confirms the bearish trend. -DI stands at 27.6, indicating strong selling momentum; +DI is at a low level of 13.8, underlining weak buying pressure.

However, the ADX is at 19.8, indicating a lack of strong trend strength, which could mean a prolonged price consolidation. With ADX falling below 20, bulls may use this opportunity to weaken the selling pressure.

The chart also shows pivot levels; The current price is just above the $126.2 support level. If the price declines below this level, Aave could face further declines and could potentially decline below the $120 level.

In the meantime, the asset needs to gain significant ground for the prevailing sentiment to change. Aave will need to break through the $147.12 pivot level, up 13.5% from its current price, to shift momentum from bearish to bullish. Even then, additional resistance levels lie at $160.04, $168.03, and $180.96.