AAVE Price Analysis: Bearish Signals and Whale Selling Activity Deepen Short-term Correction

Deterioration of Technical Indicators and Expansion of Downward Momentum

Aave(AAVE) has continued its bearish trend after experiencing a decline of over 12% last week. The current price is trading at $169.40, and technical indicators are consistently signaling negative signals. Notably, the RSI index is at 36, below the neutral 50 level, indicating strengthening downward momentum. The MACD also remains in a bearish signal since the bullish crossover last week, suggesting that short-term correction pressures may intensify.

Large-Scale Sell-Off by Whale Wallets Creates Additional Pressure

According to on-chain data analyzed by Lookonchain, a whale wallet sold approximately 230,350 AAVE worth about $37.8 million in a single transaction on Monday. This adds significant selling pressure to the market. Santiment’s network realized profit/loss (NPL) indicator shows that profit-taking activity among Aave holders has reached its highest level since late November, indicating active activity by investors realizing substantial gains.

AAVE Price Outlook: Moving Average Resistance and Support Level Analysis

Aave failed to rebound from the 50-day exponential moving average (EMA) of $193.61 on December 10, and the downtrend has become more pronounced. As of Monday, AAVE has already undergone an over 18% correction, and if it falls below the daily support level of $160.51, there is a possibility of further decline toward the November 21 low of $147.13.

On the bullish side, if AAVE manages to break through the daily resistance of $179.27, it could attempt a rebound toward the 50-day EMA level of $193.61. Currently, technical conditions favor the bears in the short term, but there is still a chance for a rebound if indicators improve.