Aave encountered a Whale selling pressure of 37.6 million dollars, causing the AAVE price to fall nearly 10% in a single day.

Aave (AAVE) has recently been under significant price pressure. On December 22, a whale sell-off amounting to 37.6 million dollars triggered severe market fluctuations, causing AAVE to drop rapidly in a short time, with the price once falling to around 161.70 dollars, close to the key support range that has been tested multiple times this month.

On-chain data shows that the recent dumping mainly came from address 0xa923. This wallet sold approximately 230,350 AAVE at once and exchanged it for stETH and WBTC, quickly amplifying the selling pressure in the spot market. Notably, despite the massive trading amount, the address recorded a loss of about 13.8 million USD, indicating that this action resembled more of a passive stop-loss or liquidity pressure release rather than a planned asset rotation.

From the perspective of the overall on-chain structure, the Whale behavior of AAVE shows a clear differentiation. Although the concentrated selling by a single large holder has impacted short-term sentiment, not all funds are withdrawing. In early December, there was an address that cumulatively held over 310,000 AAVE through Aave's recursive lending mechanism, while another address invested approximately $35 million in AAVE and related assets during the market pullback.

From a long-term perspective, the chip structure of AAVE remains relatively solid. In the past month, the total holdings of AAVE by the top 100 addresses have continued to rise, while the exchange balances have been decreasing. Generally speaking, a reduction in exchange reserves means that the willingness to actively sell is weakening, creating conditions for subsequent price stabilization.

Institutions are also sending positive signals. Previously, Multicoin Capital bought about 20 million dollars worth of AAVE through over-the-counter trading at a price close to 178 dollars, showing that some institutions still recognize the long-term value of Aave. Currently, Aave generates nearly 100 million dollars in protocol fees each month, accounting for about 87% of the revenue share in the DeFi lending market, and the fundamentals remain solid.

However, from a technical perspective, the short-term pressure on AAVE has not been lifted. The price structure shows lower lows and lower highs, with the midline of the Bollinger Bands repeatedly acting as resistance for rebounds. The current range of 160–165 dollars is an important support level; if it is effectively broken on the daily chart, the price may further retrace to the 145–150 dollar region. The RSI indicator is still below 50, indicating insufficient bullish momentum.

In summary, AAVE is currently in the recovery phase after a Whale sell-off. In the short term, the price may maintain a weak fluctuating pattern, but with long-term holders and institutions continuously increasing their holdings, the medium to long-term fundamentals still have support. For investors focusing on Aave's price trends, AAVE Whale movements, and the DeFi lending sector, the performance around $160 will be a key observation point.