Aave Price Faces Pullback Risk as Whale Buying Pauses
Aave price has jumped 185% since April, driven by record network growth and rising fees. Total value locked in the Aave ecosystem reached $41 billion, while supplied liquidity hit $63 billion. Monthly protocol fees climbed to $80 million, boosting the treasury to $235 million. However, on‐chain data shows whale activity stalling since mid-August, with top holders’ balances unchanged at 183,116 AAVE (~$59 million). Smart money addresses have slightly reduced their stakes, and token supply on exchanges has inched higher. Technical charts reveal a potential double-top pattern with a neckline at $113.80 and a peak at $377. A sustained drop below the $377 level could see Aave price retreat towards key moving averages near $190. Traders should watch whale accumulation and exchange inflows for signs of a deeper pullback.
Bearish
Stalled whale accumulation and a developing double-top chart pattern typically precede downward corrections in crypto markets. Historical examples, such as the late-2021 Ethereum pullback after whale selling slowed during a bull run, highlight how reduced smart money participation can trigger profit-taking among smaller investors. In the short term, Aave price may face increased selling pressure as traders react to heightened exchange inflows and waning momentum. Over the longer term, strong fundamentals—reflected in high TVL, rising fees, and a growing treasury—could provide support, but the immediate bias remains bearish until whales resume buying and key support levels hold.