My crypto people! 🤯 Did you see that master move of a billion USDT moving to Aave V3? We're talking about a whale 🐳 (that is, a giant investor) who just made a move that, at first glance, would make you think: "To the moon!" But be careful, this is where the analysis gets spicy.
Look, the landscape is like the weather here: it changes all the time. On one hand, yes, there is a whale pouring that massive amount of USDT into Aave V3. This is like when you see a big player moving into your neighborhood: it creates expectations. Many interpret it as a sign that institutional money is coming in strong, or that they are going to use that USDT to take out huge loans and buy more altcoins. In fact, another whale spent $35.7 million buying various coins, including AAVE! That's an indicator that someone is accumulating. 🤑
📉 And what's up with AAVE in the chart?
Now, let's get technical, which is what gives us the truth without filters. Look at the image (the AAVE/USD chart). The price action has been moving within an ascending channel (the two solid lines going up). It's as if it were climbing a ladder, but with many ups and downs.
We see that the price has been bouncing between the low and high parts of the channel.
The key move: The price tried to break the upper line of the channel (the resistance) near $203, but couldn't hold! ❌ And the prediction shown by the chart after that failed attempt is not very encouraging: it draws a strong drop, maybe seeking support from the lower channel, and even breaking it to look for much lower levels, near $131.80. 😳
This brings us back to the whale's movement. The entry of those billion USDT is Neutral/Divergent. Why?
It could be to short: As the analysis says, that whale might be depositing USDT to use it as collateral and then open a short position in AAVE or another crypto, betting that the price will go down. If the chart prediction is correct, the short would be a gold mine!
Market Divergence: While some are putting money in, perhaps betting downwards, on-chain data tells us there are net outflows to exchanges. This means that holders (those who have the coin) are taking their AAVE out of trading platforms, probably to hold them long-term (HODL). It's a battle of titans between those betting short and those betting long.
🤔 Question.
Is the movement of $1.000 million USDT to Aave V3 a signal of massive buying, or is it the prelude to a wave of short positions that could bring the price of AAVE to test $130?
The market is telling us: "Don't get complacent". Money is coming in, that's a fact. But where and how it is used is what defines whether we go up or if we need to tighten our belts. The institutional signal is there, but so is the fear! We must be very alert to how the price reacts at the mid and lower line of that ascending channel. 🧐
Never invest blindly, my people. Analyze and prepare for any scenario!$AAVE
