Key Takeaways
- Two whales sold over $5.5 million in AAVE, accelerating its price decline.
- AAVE’s market cap fell by $900 million in one week, now at $3.52 billion.
- Analysts suggest a potential +168% breakout if long-term patterns hold.
AAVE’s price dropped 20% last week to $232.6, erasing significant market value. Large-scale sell-offs by whale addresses (0x1f4A and 0x8d8B) worsened the downturn, shaking investor confidence.
AAVE Price Analysis
Technical Indicators
- RSI: Nearing oversold territory, hinting at a possible rebound.
- Bollinger Bands: Price touching the lower band suggests oversold conditions, but trading below the midline signals bearish momentum.
- MACD: Bearish dominance continues, with red histogram bars indicating selling pressure.
Support Levels:
- Immediate: $219
- Secondary: $200
Resistance Targets:
- Short-term: $265 (midband)
- Next: $310
Long-Term Outlook
Crypto analyst Smith highlights an ascending broadening wedge pattern on AAVE’s daily chart. A breakout could propel prices +168% to $600 if historical trends repeat.
"EMAs lining up, support respected — bulls warming up?"
— Smith (@CryptoSmith0x)
Broader Market Context
The total crypto market cap dipped 1% to $3.12 trillion, with major altcoins (ETH, XRP, SOL) in the red. Analyst Michaël van de Poppe notes the altcoin season indicator hit a 2-year low, paralleling past cyclical lows (June 2019–2025).
FAQ
1. Why did AAVE’s price drop?
Whales dumped $5.5 million in AAVE, compounding market-wide selling pressure.
2. Is AAVE oversold?
Yes, RSI and Bollinger Bands suggest oversold conditions, but MACD shows lingering bearish momentum.
3. What’s the long-term prediction for AAVE?
A +168% surge to $600 is possible if its wedge pattern breaks upward.
4. Are altcoins poised for a rally?
Historical lows in the altcoin season indicator often precede strong rallies, per market cycles.
👉 Crypto Market Cycles Explained
Conclusion
While AAVE faces short-term pressure, its technical setup and historical trends offer bullish potential. Traders should monitor key levels ($219 support, $265 resistance) and broader market signals for entry opportunities.
Disclaimer: This content is for informational purposes only and not financial advice. Verify details independently before investing.