AAVE Faces Downside Risk as Whale Accumulation Fails to Halt Bearish Trend in DeFi Market
AAVE, the native token of the DeFi protocol Aave, is under pressure as technical indicators signal a bearish trend and potential downside risk. Recent whale accumulation was notable, with two large investors buying a combined 29,739 AAVE (worth approximately $7.5 million), yet this failed to reverse waning momentum. Key support at $248–$250 is being tested, with technical signals—such as a bearish MACD crossover, falling RSI, and weakening trading volume—pointing towards a further price drop. Market analysts warn that AAVE could see an 8% decline if support breaks, with downside targets of $235 and $220. Broader bearish sentiment in DeFi and crypto markets may amplify the pressure. Traders should closely monitor support levels and implement risk management strategies. If current support holds, a rebound to the $280 resistance is possible, but the outlook currently remains bearish.
Bearish
Despite significant whale accumulation, AAVE continues to exhibit bearish technical signals, including declining trading volume, a bearish MACD crossover, and weakening RSI. Failure to sustain critical support levels increases the risk of a further decline, potentially by another 8%. The prolonged negative sentiment in DeFi and broader crypto markets further strengthens the likelihood of downside movement. While some bullish structure remains if support holds, the prevailing outlook for AAVE is bearish in the short term.