This week, the cryptocurrency market witnessed accelerated selling pressure amid Doland Trump’s new Tariff policy. Thus, the Bitcoin price showed a flash drop to $91,000 on Monday, while the Ethereum price witnessed a $2,100 drop. Amid the renewed bearish momentum, the top DeFi token struggles to perform and recently recorded whale selling hints for further downfall.
According to Coinmarkecap, the DeFi crypto market cap is $84.12B, a 32.36% decrease over the last day.
Key Highlights:
- The recent sell-off of top DeFi tokens like AAVE, Chainlink, Uniswap, and Eigen by crypto whales signals a potential risk of a downward trend in these assets.
- AAVE and LINK price shows a temporary pullback with a bull-flag pattern to pave the way for a decisive breakout.
- A long-coming support trendline drives the current uptrend in UNI price.
Crypto Whale Sells $7.96M Worth of DeFi Tokens Amid Market Uncertainty
According to a recent tweet from Spotonchain, a smart whale identified as “0x257” has offloaded $7.96 million worth of DeFi tokens to Binance. This strategic sell-off included major coins like AAVE, Chainlink (LINK), Uniswap (UNI), and EigenLayer’s EIGEN amid growing market uncertainty.
Whale Activity Breakdown:
- 13,816 AAVE valued at $3.54 million, securing a massive $2.56 million profit (+255%).
- 161,463 LINK worth $3.13 million, locking in $2.13 million profit (+213%)
- 85,529 UNI totaling $758K, with a $258K profit (+52%).
- 289,399 EIGEN tokens valued at $531K, claimed through EigenLayer by staking ETH.
The timing of these large-scale transactions aligns with the growing concern of a prolonged correction in February. Historically, the whale sell-off has coincided with major market tops and accelerated selling pressure, indicating these assets continue their downward trend in the coming weeks.
More whales offloaded #DeFi tokens!
8 hours ago, smart whale “0x257” deposited $7.96M worth of 4 assets, including 3 major #DeFi tokens, to #Binance:
• 13,816 $AAVE ($3.54M) → +$2.56M profit (+255%)
• 161,463 $LINK ($3.13M) → +$2.13M profit (+213%)
• 85,529 $UNI ($758K)… https://t.co/xLQj0rOxSF pic.twitter.com/3v0vvH7YRo
— Spot On Chain (@spotonchain) February 5, 2025
Aave (AAVE)
Over the past two months, the AAVE price showcased a narrow sideways trend, struggling to surpass the $400 level. However, the consolidation reveals the formation of a well-known continuation pattern flag.
Currently trading at $260, the AAVE price seeks stability above the pattern’s lower trendline before the next recovery leap. A breakout from flag resistance will intensify the buying pressure to chase $440 and $520 highs.
Chainlink (LINK)
In the last two months, the Chainlink price has corrected significantly from $31 to $18.96, registering a loss of 38%. However, this correction resonated strictly with the two downsloping trendlines, revealing the formation of flag patterns.
With the current market correction, the LINK price could plunge another 15% to seek support at $16.33. However, for buyers to regain control of potential breakout from flag resistance is necessary to chase a $50 high.
Uniswap (UNI)
Over the past two months, the Uniswap price has witnessed an aggressive correction from $19.4 to $9.25 levels, accounting for a 52% loss. However, the pullback now allows buyers to seek sustainability above a long-term trendline at $8.8.
This ascending trendline has been intact since August 2024, acting as a crucial pullback point for crypto buyers to recuperate their cluster’s bullish momentum. A potential turnaround from this dynamic support will force the buyers to reclaim higher chart levels at $12.76, followed by $20.
EigenLayer (Eigen)
In the daily time frame chart, the Eigen coin price has showcased a V-top reversal from $5.65 to $1.83, projecting a 67.61% loss. This pullback, marked by a series of lower-high formations, indicates the market sentiment continues to allow a sell-the-bounce sentiment.
Unlike other DeFi tokens, the Eigen continues to project a bearish outlook following a recent breakdown from the previous bottom support of $1.54. With sustained selling, the Eigen price could extend its current correction another 18% down to hit $1.5 support, followed by a psychological level of $1.
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