AAVE Price Plummets as Whales and Retail Sellers Drive Down Token Value
Aave's (AAVE) price has plummeted, with a significant sell-off by whales and sustained retail pressure. The token's value has dropped to $214, losing $35.5 million in just a few days.
The decline began four days ago when AAVE broke down from $264. Since then, it has hit a low of $210 and experienced an 11.57% drop in the past 24 hours, along with a 21.91% decline over the last seven days. Two large transactions contributed to this: one whale dumped 88,227 AAVE tokens worth $19.89 million, and another withdrew 70,000 AAVE and sold them for $15.62 million.
Analysts suggest that for a trend reversal, bulls must reclaim the future price based on the future trend channel around $244 to target $258. However, if the trend continues, AAVE could drop to the lower boundary of the future trend channel at $209, with $202 as key support. AAVE has already dropped below both short-term and long-term moving averages, indicating downside momentum and weak market structure.
AAVE's price decline has been driven by aggressive spot selling by retail traders, with a negative spot delta recorded for six consecutive days. Predictions for a reversal vary, with some analyses indicating bearish momentum and others suggesting potential strong upside if market conditions improve and selling pressure abates. Overcoming the $240 level could be an early sign of a broader recovery.
