- AAVE boasts a large portion of holders who are currently in profit, even with a decline in high-value transactions and exchange withdrawals
- A potential bullish trend is forming as profit-holding addresses maintain their positions
In light of recent changes in AAVE’s transaction behavior, 60% of its holders still find themselves in profit.
Although the altcoin has experienced a drop in the volume of large transactions and exchange withdrawals over the past 24 hours, these elements might significantly influence market sentiment going forward.
Thus, it’s essential to examine how this collection of metrics could impact AAVE’s bullish trajectory in the charts.
AAVE’s profitable holders remain steadfast
As of now, 60% of AAVE holders are enjoying profits – indicating a degree of resilience despite falling high-volume transactions. This profitability suggests that the asset has managed to keep most holders in a positive position.
Typically, when a larger portion of holders is in profit, selling pressure in the market diminishes since these holders continue to maintain their investments.


Source: IntoTheBlock
Is the decline in large transactions a temporary breather?
In the last 24 hours, AAVE has seen a decrease of around 52% in large transaction activity. This may indicate that whales and institutional investors are adopting a more cautious approach.
Large transactions are often responsible for significant price fluctuations, but a drop in this activity could suggest that investors are in a wait-and-see mode.


Source: IntoTheBlock
Exchange withdrawals show a slowdown
Along with the decline in large transactions, exchange withdrawals have also decreased. Historically, significant outflows have indicated that investors are transferring their assets to cold storage, generally seen as optimistic by bullish traders.
With this recent decrease in withdrawals, it may imply that investors are becoming more risk-averse, preferring to keep their funds on exchanges in anticipation of short-term price changes.

Source: CryptoQuant
Will AAVE’s bullish momentum continue to rise?
Given that a considerable portion of holders remains profitable and with declining exchange outflows, AAVE’s market dynamics do not solely provide bullish signals.
The decrease in large transaction volumes may temporarily reduce volatility, while the ongoing profitability of holders could foster a sense of optimism.
Together, these elements may lay the groundwork for AAVE to continue developing its bullish momentum in the near term.