Is the short-term scare turning whales into paper-hands or is a downfall coming for the top DeFi tokens?
Despite the broader market recovery, certain DeFi tokens are revealing minor signals of underlying weakness. With whales booking profits in DeFi tokens, the broader market anticipates an intense correction in the coming days.
Furthermore, with the Bitcoin BTC $96 766 24h volatility: 4.7% Market cap: $1.93 T Vol. 24h: $72.04 B price struggling to surpass the $106,000 barrier, corrections in the broader market will likely crash the altcoins under critical support levels.
Whales Offload Massive AAVE and UNI holdings
In a recent X post, formerly Twitter, by SpotOnChain, four whales have made significant exits in top DeFi tokens. The massive profit bookings of $12.7 million, which comes in AAVE $177.8 24h volatility: 4.4% Market cap: $2.70 B Vol. 24h: $405.43 M and UNI $5.80 24h volatility: 5.6% Market cap: $3.68 B Vol. 24h: $364.02 M tokens over the past two days.
In the past 48 hours, the whales 0x991 and 0x970, probably owned by a single entity, has made significant offloading. The entity has sent 41,469 AAVE tokens worth $14.7 million to Binance.
With the sell-off, the whale has likely secured a profit of $11.3 million. This marks a massive return of 330%. Currently, the whale continues to hold 28,639 AAVE tokens worth $10.2 million. This highlights an unrealized gain of $11.86 million.
Furthermore, the whale 0x1d1 has deposited 131,633 UNI tokens worth $1.81 million to Binance. In the offloading over the past 14 hours, the whale has likely made a profit of $733,000.
This marks a significant return of 68% in a matter of three months. After the recent sell-off, the whale continues to hold $8.57 million worth of AAVE and [NC] tokens. The portfolio currently holds a net estimated profit of $4.6 million.
Finally, the whale 0xcc0, probably owned by Sigil fund, has moved 145,824 UNI tokens worth $2 million. The offloading occurred over Binance and has allegedly gained $696,000 for the corporate fund.
In a matter of 2.5 months, the recent sell-off has marked a return of 53%. With the massive sell-off in AAVE and UNI tokens by multiple whales, the short-term sentiment warns of a correction rally.
Uniswap Reveals Strong Support at $12.82
The Uniswap price over the past 24 hours has witnessed a downfall of 1.08%. Currently, it trades at $13.36 with a market cap of $8 billion. In the daily chart, the Uniswap price trend reveals a declining trend, forming a descending triangle pattern.
The $12.82 comes as a crucial support level holding the Uniswap prices. Currently, the Uniswap price orients at a potential bounce back within the triangle pattern, supported by the RSI divergence.
In case of a reversal rally turning into a breakout run, the upside potential for Uniswap prolongs to $18.82 or the 50% Fibonacci level. This highlights an upside potential of nearly 40%. However, a bullish failure to sustain dominance at $12.82 will likely test the 200 EMA line at $10.76.
AAVE Price Analysis Targets $530
In the daily chart, the Aave token reveals a recovery run, challenging the crucial supply zone between $371 and $383. This marks the neckline of a rounding bottom reversal.
Currently, Aave token trades at a market price of $357, marking an intraday pullback of 3.46%. A pullback from the neckline will likely test the 23.6% Fibonacci level at $334.
However, if the broader market stabilizes, a bullish breakout above the $400 mark will likely challenge the 100% Fibonacci level at $530.
Conclusion
The DeFi market faces short-term correction risks as whales offload AAVE and UNI, yet technical patterns for both tokens suggest potential recovery opportunities.
Uniswap’s $12.82 support and Aave’s $371-$383 resistance zone will be critical levels to watch. If broader market conditions stabilize, significant upside targets for both tokens remain achievable in the coming weeks.
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