- Analyst expects rebound after TD Sequential “9” indicates local top.
- $1.7 billion in ETH withdrawn, mostly linked to Justin Sun.
- RSI shows weakening momentum as AAVE struggles below $300 mark.
AAVE is flashing signs of a short-term correction before a potential bullish surge. Crypto analyst Ali Martinez has forecasted a temporary price decline for AAVE, suggesting a drop to $270 as part of a broader bullish setup. The prediction is based on Fibonacci retracement levels, identifying the 0.5 Fib zone as a possible “reload area.”
Martinez noted that a TD Sequential “9” candle has appeared on the 3-day chart, often a precursor to a local top and short-term retracement. If the correction plays out, the token may regain bullish momentum after touching the $270 level, potentially targeting the $560 resistance zone in the next leg up.
Justin Sun-Linked Wallets Behind Massive Aave Withdrawals
Aave recently recorded $1.7 billion in Ethereum outflows, sparking speculation within the DeFi community. Marc Zeller, a contributor to the Aave protocol, attributed much of the activity to crypto entrepreneur Justin Sun. Data from Arkham shows wallets associated with Sun moved over $646 million in ETH.
Additionally, HTX, where Sun serves as an advisor, withdrew $455 million. Another firm, Abraxas Capital Management, removed $115 million. Despite the heavy withdrawals, Sun-related addresses still hold approximately $80 million in ETH on Aave.
AAVE Faces Key Technical Test Below $300
As of July 24, AAVE trades at $288.65, down 0.60% in 24 hours. The token has entered a corrective phase after reaching a local high of $338.77. It is currently testing a crucial support at $283.40, which may provide short-term price stability. A breakdown below this level could send the token to its next support at $213.25.
The Relative Strength Index (RSI) has dropped to 45.40, indicating reduced buying pressure. Volume has slightly declined, reflecting cautious sentiment among traders. On the upside, reclaiming the $300 level could trigger a move back toward $338.77.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
