Aave drops 6% as whale sells 184,203 tokens – Who absorbs the supply?
Aave announced that USDC incentives were live on its V4 platform on Base, and the rewards make it cheaper to borrow USDC against tokenized stocks.
On the 2nd of November, Aave [AAVE] launched USDC Incentives on its v4 platform on Base. The incentives are targeted at both existing users and potential newcomers.
The rewards significantly reduce the cost of borrowing USDC against tokenized stocks, the announcement read. Lowered cost of capital will lead to greater participation and adoption, which can enhance Aave’s competitive position in the DeFi space.
Selling pressure on AAVE is yet to let up
In other news, the Mercado Bitcoin security incident saw $40 million drained. The hacker still owns 12.82k AAVE, worth $1.61 million, according to LookonChain’s X update.
This could increase the selling pressure on the altcoin, which has already faced a 6.16% price decline in the past 24 hours.
The onchain analytics platform also noted that a whale was dumping AAVE, selling 184,203 tokens worth $25.5 million over the past ten days.
Last week, AMBCrypto reported that the $113 level was the line in the sand for the DeFi token bulls to hold on to. The higher timeframe trend was bearish, but the 1-day structure showed bulls were in control.
At least, for now. The $120 demand zone has been tested and produced a weak bounce that faltered at the $140 local resistance level in recent days.
Moreover, the $130 local support, which appeared to be reclaimed over the weekend, was also lost.
Aave navigates short-term range
The range (purple) extends from $118.4 to $139, with the midpoint at $128.7. At the time of writing, the token was trading below the mid-range point.
The altcoin’s A/D and Awesome Oscillator readings showed increased selling pressure and downward momentum over the past 48 hours of trading.
Swing traders can keep an eye on the $113-$120 zone. A slide below this zone would confirm a bullish trend shift on the 1-day chart and validate a bearish bias for swing traders.
Final Summary
- Aave announced that USDC incentives were live on its V4 platform on Base, and the rewards make it cheaper to borrow USDC against tokenized stocks.
- The DeFi token’s price action was range-bound in recent days, and selling pressure from whales and pessimistic market sentiment could see the token post further losses.
