Since being rejected at $190 four days ago, AAVE has faced intense downward pressure. The token declined for four consecutive days, reaching a local low of $165.
At the time of writing, Aave (AAVE) was trading at $166, down 10.17% on the daily charts, reflecting intense bearish pressure. Amid this market collapse, investors, especially whales, panicked and started dumping their products.
AAVE Whale Suffers $1.54 Million Loss
As AAVE began to decline a few days ago, whale orders also fell. According to data from CryptoQuant, the average spot order size showed a sharp decline in orders from large whales.
Source: CryptoQuant
In fact, these orders are at weekly lows; thus, although active, whales have declined significantly in the spot market.
Onchain Lens observed one of the active whales. Notably, a whale returned after a month and a half and sent 15,396 AAVE, worth $2.57 million, to FalconX.
The whale initially received 20,396 AAVE, worth $4.89 million, from FalconX, of which 5,000 AAVE were sold for $779,056.
With the recent transaction, the whale made losses of $1.54 million. Usually, when whales turn to aggressive selling during a market downturn, it indicates a lack of confidence in the market.
Thus, whales are very bearish and potentially anticipate more losses in the future.
Retailers are also selling aggressively
AAVE faced significant selling pressure from all market participants. According to Coinalyze, the token recorded a negative buy and sell delta for three consecutive days.
Source: Coinalyse
Over the past 24 hours, for example, the altcoin saw 165.26k selling volume, compared to 140k buying volume. As a result, the altcoin experienced a negative delta of -25.2k, a clear sign of aggressive spot selling.
Along with this, the exchange activity also validated this sales activity. According to CryptoQuant, Exchange Netflow turned positive for the first time in four days.
Source: CryptoQuant
At the time of writing, Netflow accounted for 6.7k AAVE tokens, indicating higher exchange deposits. Usually, increasing foreign exchange deposits accelerates downward pressure on an asset, a prelude to falling prices.
Is $160 Support Under Threat?
According to AMBCrypto, AAVE continued to decline amid intense selling pressure from whales and retail traders.
As a result, the altcoin formed a short-term bearish cross, with the 9MA crossing the 21MA to the downside, indicating intense bearish pressure.
Source: TradingView
At the same time, the altcoin’s Relative Strength Index (RSI) made a bearish crossover, further validating this downtrend.
Therefore, these market conditions position AAVE for potentially greater losses. If sellers, especially whales, continue to sell, AAVE will break through the $160 support and drop to $155.
To reverse the trend, the altcoin must close above the 9 and 21 MA at $178. This will strengthen the altcoin, allowing it to reclaim $189 and erase recent losses.
Final Thoughts
- An AAVE whale unloaded 15,396 AAVE, worth $2.57 million, a loss of $1.54 million.
- AAVE declined 10%, falling below its short-term moving averages, reflecting intense bearish pressure.
