AAVE Plunges 11% – Can $202 Support Withstand Massive $35.5M Whale Exodus?
DeFi giant AAVE faces critical test as whale activity rattles market confidence
The $202 Question
Massive sell-off triggers panic among retail investors while institutional players watch from the sidelines—because nothing says 'stable investment' like nine-figure dumps before breakfast. AAVE's 11% nosedive isn't just another crypto Tuesday—it's a stress test for DeFi's backbone.Whale Watching Turns Bloody
That $35.5 million exit stampede left charts looking like a ski slope in January. Support levels tremble as leveraged positions get liquidated faster than you can say 'decentralized finance.' The real mystery? Whether this is strategic repositioning or pure profit-taking before the next market tremor.Technical Breakdown
Chart analysts spot trouble brewing below $210—a level that previously served as reliable bedrock. Now everyone's watching whether $202 becomes the new floor or just another pit stop on the way down. Trading volumes spike 300% as the community debates if this is buying opportunity or escape window.Market Psychology
Fear spreads quicker than blockchain gossip when whales move this decisively. The real question isn't just about price action—it's about whether DeFi's blue chips can maintain their premium during traditional market turmoil. Because nothing says 'mature asset class' like double-digit swings on a random Thursday.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.
Source: CryptoQuant
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.
Source: Lookonchain
Another long-term whale, reported by EmberCN, withdrew 70,000 AAVE and sold them for $15.62 million.
In total, these two whales offloaded 158,227 tokens worth approximately $35.51 million. Often, such a vigorous selling activity during a downtrend signals a lack of market conviction, a clear bearish signal.
Historically, increased selling pressure from whales has resulted in intense downward pressure, a precursor to lower prices.
Retail traders join the sell-off
Unsurprisingly, with whales selling, small-scale investors have joined the exit. According to Coinalyze, AAVE has recorded a negative spot delta for six consecutive days.
On the 17th of October, AAVE saw 48k in Sell Volume compared to 46k in Buy Volume. As a result, the altcoin saw a negative delta of -1.34k, a clear sign of aggressive spot selling.
Source: Coinalyze
Furthermore, exchange activity further echoed the trend. According to CryptoQuant, the altcoin has recorded a positive Exchange Netflow for three consecutive days.
Source: CryptoQuant
At press time, Exchange Netflow was 30k AAVE, indicating higher exchange inflows. Historically, higher exchange flows have preceded lower prices, as supply becomes available for immediate sale.
More losses looming?
According to AMBCrypto, AAVE has experienced a sustained decline driven by whale and retail selling pressure.
Therefore, AAVE has dropped below both short-term and long-term Moving Averages, indicating downside momentum and weak market structure.
Source: TradingView
Thus, both short-term traders and long-term traders have lost confidence and momentum, marking a corrective phase. Such a market structure signals trend continuation potential.
If this trend continues, AAVE will drop to the lower boundary of the Future Trend Channel at $209, with $202 as key support.
For a trend reversal, however, bulls must step up and reclaim the Future Price based on the Future Trend Channel around $244. This will strengthen the altcoin to target the Short-term EMA (EMA20) at $258.
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