The crypto market has been trying hard to recover from the bearish blow. But, the drawdown has created such fear among investors that even experienced crypto holders are escaping at the first sign of loss.
Can AAVE take a hit?
AAVE has recovered by 38.33% since the crash, but in the last 72 hours of 28 May, the trend reversed and the altcoin dipped by 13.42% again.
This threw AAVE under the $100 mark for the second time within a month. Trading at $94, AAVE has failed for the third time this month to flip its $112 resistance into support.
AAVE price action | Source: TradingView – AMBCrypto
This consequently triggered panic across the market, and investors ended up dumping over 200k AAVE worth almost $19 million back into exchanges.
AAVE supply on exchanges | Source: Santiment – AMBCrypto
And, these weren’t regular traders either, as the pattern of selling displayed a significant contribution of AAVE’s faithful long-term holders who moved their holdings to prevent another slew of losses.
Consuming over 85 million days, the sale of 25 May was the third incident in this month alone as, on 11 and 12 May, AAVE LTH holders consumed over 220 million days in the span of 48 hours.
AAVE long terms holders’ selling | Source: Santiment – AMBCrypto
However, one positive affirmation observed was in the form of investors’ presence on the network, as none of the AAVE investors exited the market despite the events of April and May, which brought the price down from $261 to $94.
In fact, over this period, AAVE noted the arrival of more than 2k investors on the network, which is almost twice as fast as its current rate of addition of investors.
This is why even despite the worsening market conditions, AAVE is exhibiting its first signs of recovery, and they do look promising, provided AAVE can hold this one out.
Notably, After noting bearish cues since the beginning of April, AAVE registered its first bullish green bar on the charts earlier on 28 May.
Although the bullishness hasn’t gained strength yet, it is well on the verge of doing so if AAVE can maintain a few more green candles.
