AAVE has declined by 1.71% over the past 24 hours, falling from a high of $361 to $335. This decline is attributed to large holders engaging in profit-taking, aiming to capitalize on the New Year's pump. A whale recently sold 19,001 Aave tokens worth $6.5 million through Binance, securing a $4.93 million profit. This marks the whale's first sale since accumulating the altcoin in 2024. After the sale, the whale still holds 70,108 AAVE tokens worth $23.65 million.
\Whales selling their holdings can signal a lack of confidence in the market or a desire to maximize profits after a price surge. Such selling activity can lead to increased selling pressure, as investors may interpret it as a bearish sentiment, prompting weaker hands to sell. \As anticipated, the increased selling activity has negatively impacted AAVE's price charts. At the time of writing, AAVE was trading at $339, representing a 1.71% decline on daily charts. Prior to the decline, the altcoin had been on an upward trajectory, gaining 19.34% monthly. \Although the altcoin has experienced a price decline due to the whale's selling, the overall market sentiment appears bearish, with participants anticipating further price drops. This is supported by a bearish crossover on the Relative Strength Index (RSI), indicating that sellers have entered the market and are currently dominant. The Chaikin Money Flow (CMF) is also negative at -0.02, further confirming strong selling pressure. \Looking ahead, on-chain data reveals a decline in outflow volume from 59.22k to 33.19k, according to IntoTheBlock. This is accompanied by a surge in net inflows from -22.02k to 4.57k, suggesting that more investors are transferring their tokens to exchanges for selling than accumulating