Amid the general market decline, 97,602 traders have liquidated in the past 24 hours, with the combined liquidation value reaching $274.73 million. The leading coin, Bitcoin (BTC), has extended its decline, slipping by 1%, while its trading volume plummeted by 20% during the same period.

Interestingly, a key on-chain metric has flashed a buy signal, suggesting an opportunity for BTC contrarian traders. However, caution is advised, as the market still faces potential downside risks.

Bitcoin Flashes Buy Signal

Bitcoin’s market value to realized value (MVRV) ratio, which measures the overall profitability of all its holders, is the on-chain metric of interest here. As of this writing, the coin’s 30-day and 90-day MVRV ratios are -0.89 and -1.48, respectively. 

Generally, a negative MVRV indicates that the current market price is below the average price at which most investors acquired the asset. Therefore, if all holders were to sell their coins at the current market price, they would collectively realize a loss. 

However, the metric also offers some respite. Historically, negative MVRV ratios represent a buying signal. They indicate that the market is oversold, and a potential buying opportunity could exist. A negative MVRV shows that the asset is being traded below its historical acquisition cost and may be due for a rebound.

Read more: Top 7 Platforms To Earn Bitcoin Sign-Up Bonuses in 2024

Some traders are already heeding the buy signal and have begun to accumulate the leading coin. Recently, there has been an unprecedented surge in new whale activity, marking levels of involvement never seen before.

“ Look at how fiercely the new whales are stacking Bitcoin; this market has never seen such accumulation,” Ki Young Ju, CryptoQuant’s founder, said in a post on X. 

While this buy signal may encourage some traders to increase their BTC holdings, it’s important to note that the risk of further decline remains. The market’s buying pressure continues its downward trend, as reflected in BTC’s falling Relative Strength Index (RSI), which currently stands at 44.88.

The RSI is a key indicator of overbought or oversold market conditions. At its current level of 44.88, selling activity outweighs buying pressure among BTC holders.

BTC Price Prediction: Key Support Levels to Hold

Should selling pressure intensify, Bitcoin could approach the critical support level at $58,518. A failure by bulls to defend this price may trigger a further drop, with the next support target at $54,899.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

However, if market sentiment shifts from bearish to bullish, Bitcoin may reverse its trajectory, invalidating the bearish outlook. In this case, BTC could rally toward $64,367 in the near term.

Grayscale, the American digital currency asset management company, has launched an Aave fund, providing investors with exposure to the AAVE token. This new offering expands Grayscale’s lineup of crypto investment products, which now includes over 20 different vehicles.

Aave is an open-source protocol that enables the creation of non-custodial liquidity markets. It allows users to earn interest by supplying and borrowing assets at either a variable or stable interest rate.

Grayscale Adds Aave Fund To Its Product Suite

The fund, Grayscale Aave Trust, is solely invested in and deriving value from the price of the AAVE token. It will track its value, less fees and expenses. With this fund, investors will be able to access the token as a security. While doing so, they will avoid challenges relating to buying, storing, and safekeeping the AAVE token directly.

“We are proud to announce the creation of a new single-asset crypto investment fund, Grayscale AAVE Trust, which will be available through private placement. Available to eligible accredited investors,” read the official announcement.

Grayscale Aave Trust adds to the list of funds the asset manager offers, extending its suite of investment products in the decentralized finance (DeFi) space. As BeInCrypto reported, the firm launched an Avalanche Trust recently, offering exposure to the AVAX token.

Read more: How To Use Aave?

Taken together, Grayscale now boasts over 20 different crypto investment vehicles, including the flagship Bitcoin Trust (GBTC) and the Ethereum Trust (ETHE). It is worth mentioning that these funds come after Grayscale successfully launched spot Bitcoin ETFs in January. These draw significant investor interest in crypto products that are now tradable publicly.

Grayscale also opened a decentralized AI fund to accredited investors, offering them a diversified basket of tokens from sector projects. These developments highlight Grayscale’s increasing institutional interest in integrating traditional finance (TradFi) into the DeFi ecosystem.

Meanwhile, interest in the Aave protocol comes as the decentralized lending platform allows users to lend and borrow crypto using automated processes. Specifically, Aave allows users to borrow without the need for traditional financial intermediaries.

The platform has grown in popularity. It is the largest crypto lending protocol based on metrics of total value locked (TVL) of $11.652 billion, according to data from DeFiLlama.

Read more: Top 11 DeFi Protocols To Keep an Eye on in 2024

Despite the news, the AAVE token price remains subdued, down nearly 4% since Thursday’s session opened. According to BeInCrypto data, the token is currently trading at $137.59.

Popular meme coin Pepe (PEPE) is under significant pressure, primarily driven by the profit-taking activity of its long-term holders (LTHs). It currently trades at $0.0000090, witnessing an 18% price decline over the past four days.

Two notable on-chain metrics reveal that previously dormant PEPE tokens held by its LTHs have begun to change hands. If this cohort of PEPE holders continues to sell, the meme coin may witness another double-digit decline.

Pepe Long-Term Holders Book Profits

The first metric indicating profit-taking among Pepe’s long-term holders (LTHs) is its Mean Coin Age. BeInCrypto’s analysis shows that this metric has declined by 1% since the beginning of October, currently standing at 300.

This metric calculates the average age of all coins held by addresses on the blockchain. A decline indicates that older coins are being sold or transferred, suggesting that long-term holders (LTHs) are beginning to liquidate their positions. This activity may be driven by profit-taking or a shift in market sentiment.

Read more: Pepe: A Comprehensive Guide to What It Is and How It Works

Furthermore, PEPE’s falling Mean Dollar Invested Age (MDIA), which measures the average age of a token’s holdings based on their dollar value, highlights the selling activity among its LTHs. At 153 at press time, it has noted a 4% decline since October 1.

A decreasing MDIA suggests that older, more established holders are selling their tokens. It signals a change in market sentiment, indicating that investors are becoming less confident in the token’s long-term prospects.

The surge in profit-taking activity among an asset’s LTHs is a bearish signal, indicating a loss of confidence among a cohort of investors known for weathering numerous headwinds. This shift may prompt short-term holders (STHs), often called “paper hands,” to sell their coins.

Since STHs hold a significant percentage of an asset’s circulating supply, their selling can further exacerbate downward pressure on the price.

PEPE Price Prediction: August 5 Low on the Horizon

If PEPE’s selling pressure intensifies, the coin could continue its decline. According to its Fibonacci Retracement readings, PEPE may fall an additional 35%, reaching $0.0000058 — a level last seen on August 5.

Read more: Pepe (PEPE) Price Prediction 2024/2025/2030

On the other hand, if PEPE’s LTHs refrain from selling their tokens and market sentiment improves, PEPE could reverse course. In that scenario, the coin may initiate an upward trend and attempt to break resistance at $0.000012.