Key Takeaways

What triggered AAVE’s recent price drop to $214? 

A surge in whale sell-offs totaling $35.5 million and sustained retail selling pressure drove the decline.

What must happen for AAVE to reverse its bearish trend? 

Bulls need to reclaim the Future Trend Channel level around $240 to regain momentum and target $258. 

Aave [AAVE] has experienced sharp downward pressure since reaching $264 four days ago, falling to a low of $210.

At the time of writing, AAVE was trading at $214, after facing an 11.57% drop in the past 24 hours and a 21.91% decline over the last seven days.

As the price continues to break down, investor sentiment has worsened, prompting panic selling, particularly among large holders, or whales.

AAVE whales dump $35.5 million worth of tokens

Notably, following the market’s brief attempt to recover from the recent price crash, AAVE saw a sharp increase in whale activity.

According to CryptoQuant, the Spot Average Order Size showed large whale orders for seven consecutive days, an indicator of sustained participation from major holders in the spot market.

In fact, on-chain monitors have reported some of these whale orders. According to Lookonchain, a whale dumped 88,227 AAVE tokens worth $19.89 million.