- 58.9% of top AAVE traders currently have short positions.
- AAVE’s daily chart has formed a bearish divergence and a double-top price action pattern.
In the midst of market volatility, Aave [AAVE] seems primed for a price drop in the coming days, with a bearish price action pattern evident on the daily timeframe.
Apart from the bearish price action, market sentiment and the potential for profit-taking in the altcoin are also factors contributing to AAVE’s negative outlook.
In addition to AAVE, other major cryptocurrencies like Bitcoin [BTC], Ethereum [ETH], and XRP are also following similar trends.
AAVE Shows Bearish Signals
Reviewing data from on-chain analytics firm Coinglass, it is observed that AAVE’s Spot Inflow/Outflow indicates a notable inflow of over $5.2 million worth of AAVE into exchanges.
In cryptocurrency terms, inflow signifies the movement of assets from wallets to exchanges, often pointing towards potential selling pressure that could lead to a price decline.
Besides recent activity among long-term holders, traders are showing a preference for short positions, anticipating a potential price decrease, as per Coinglass reports.
Currently, AAVE’s Long/Short Ratio stands at 0.79, the lowest since late November 2024, indicating strong bearish sentiment among traders.
Source: Coinglass
At present, 58.9% of top AAVE traders hold short positions, while 41.10% are in long positions.
Hence, it seems that traders and long-term holders are favoring short positions, contributing to a bearish outlook for the asset. This aligns with the recent formation of bearish price action.
AAVE Technical Analysis and Future Levels
According to technical analysis by AMBCrypto, AAVE has formed a bearish double-top price action pattern. The chart indicates a bearish divergence on the daily timeframe, suggesting a potential price drop in the coming days.
Source: TradingView
Based on recent price movements and historical momentum, the asset is anticipated to decline by 18% and reach the $290 level soon.
Read Aave’s [AAVE] Price Prediction 2025–2026
Current Price Trend
At the moment, AAVE is trading around $350 after a drop of over 9% in the past 24 hours.
During the same period, its trading volume has decreased by 28%, indicating reduced activity from traders and investors amidst the bearish market conditions.