In recent weeks, the crypto market has experienced a period of slowed growth, with Bitcoin’s value struggling to maintain its position above the $100k mark. Despite this, investors remain hopeful that this period of stagnation represents a temporary lull, a chance for the market to regain its strength and set the stage for a considerable rally in the years leading up to 2025. In anticipation of this, leading crypto institutions and so-called ‘whales’ are busily amassing DeFi tokens.
Two altcoins in particular have emerged as the prime choices for these investors: Uniswap and AAVE. The recent price breakout of Uniswap from the $17 neckline of the C&H pattern is expected to trigger a rally of as much as 80%, potentially seeing it reach $30. Meanwhile, AAVE’s recovery trend is being propelled along by a rounding bottom pattern.
This increased activity among whales and institutions in the DeFi ecosystem has not gone unnoticed, with prominent crypto investment firm Galaxy Digital recently pulling 1.07 million UNI tokens (valued at $18.9 million) and 27,722 AAVE tokens (worth $10.19 million) from exchanges. This significant movement indicates a growing confidence in DeFi projects among institutional investors and may well serve as a harbinger of a bullish market outlook.
Uniswap’s price has seen a massive surge recently, breaking out from the $17 resistance of the cup and handle pattern. The UNI price currently stands at $17.3, following a slight retracement to the breached resistance. This pullback could potentially rekindle the bullish momentum and pave the way for higher levels. If this pattern holds true, the coin’s price could rally by a further 80% to challenge the $30 psychological barrier.
In the case of AAVE, the coin price has outperformed other DeFi tokens, rallying from $151 to $363—a 140% increase—in the past three weeks. The weekly chart analysis suggests that this recovery could be the formation of a classic reversal pattern known as the rounding bottom. This ‘U’-shaped recovery pattern typically signals a gradual shift from bearish to bullish in an asset’s price movement. If the pattern holds, the AAVE price could be set for a further 22% rise, potentially challenging the immediate resistance of $447.
According to Intotheblock, AAVE saw 3,310 transactions exceeding $100k in value last week. This is the highest weekly number since 2022, suggesting renewed whale activity in the asset. A breakout from the $447 resistance level could offer the next stepping stone to prolong the current uptrend.
In conclusion, the recent pullbacks and bullish patterns in both Uniswap and AAVE prices, along with the increased activities of whales and institutions, suggest that these DeFi tokens are primed for a major rally. Investors and crypto enthusiasts should keep a close eye on these promising developments.
