AAVE slips to $173 - Is $1.9M whale buy the start of a rebound?

AAVE whales signal a market return

Source: CryptoQuant

Demand is recovering across the market

Besides the whale comeback, buyers have returned across the market. Buyers vs. Seller Strength indicators on TradingView showed sellers were overwhelmed by buyers.

Source: TradingView

At the time of writing, the buyer‘s strength rose to 80.82, while the seller’s strength dropped to 19.18, indicating newfound demand in the market.

Although sellers remain active in the market, buyers have shown more aggressiveness. At the same time, the altcoins Spot Taker CVD has remained green throughout the past week.

Source: CryptoQuant

A positive Taker CVD suggested that buyers have mostly dominated the market, a clear sign of rising market demand. This leaves the market at a critical point, awaiting the next major move.

Is AAVE stable enough for a sustainable breakout？

AAVE showed bullish momentum, jumping above its short-term moving average, EMA 20, at $168 as buyers entered the market. At the time of writing, AAVE was testing the EMA50 at $274; a flip of this level will validate the altcoins upward momentum.

However, the downside strength remains elevated, especially as the Stochastic Momentum Index (SMI) fell to 64 after a bearish crossover.

Source: TradingView

Such market conditions indicated a fierce battle between bulls and bears for control of the market. Thus, the next move depends on which side overwhelms the market.

Thus, if the newfound demand, especially from whales, holds, the altcoins upside momentum will continue, flip $184, and target $194, where it faced rejection.

However, if bears retake the market and overwhelm the rising upside demand, the altcoin will seek support at $168.