Key Notes
- AAVE holds 65% of the DeFi lending market while its TVL has hit a new ATH every month since December.
- Two whale wallets deposited more than 41,000 AAVE tokens to CEXs in the past 24 hours.
- Analysts claim that if AAVE falls below $159, further downside toward $128 could also follow.
AAVE AAVE $165.8 24h volatility: 5.9% Market cap: $2.51 B Vol. 24h: $245.23 M , one of the most dominant DeFi lending protocols, has seen a sharp increase in whale activity, raising concerns about a potential price dump.
While the price is currently up, the large-scale movements of AAVE tokens by key players suggest that traders should stay cautious.
Whale Activity Raises Red Flags
Blockchain analysis platform Lookonchain reported significant sell-offs from two whale wallets. Address 0xd282 deposited 30,001 AAVE ($4.98M) to FalconX and still holds 37,425 AAVE ($6.33M), with a total profit of $11.8M.
Whales are selling $AAVE !
0xd282 deposited 30,001 $AAVE ($4.98M) to #FalconX in 2 hours, and currently holds 37,425 $AAVE ($6.33M), with a total profit of $11.8M.
0x1AdC deposited 11,018 $AAVE ($1.86M) to #OKX at a loss of $293K. https://t.co/CLtq89Y51H https://t.co/ryGShfgiRQ pic.twitter.com/Jnj92ERVjH
— Lookonchain (@lookonchain) April 1, 2025
Similarly, 0x1AdC moved 11,018 AAVE ($1.86M) to OKX, taking a $293K loss on the trade. These transactions signal that high-volume traders are either taking profits or exiting positions, which could put downward pressure on AAVE’s price.
However, Kiraverse, an Unreal Engine 5-based multiplayer game, later disputed the narrative, claiming that at least one of these transactions was part of a strategic move.
This was my trade and I reacquired it through different wallets
Verify before trusting lookonchain
— KIRAVERSE (@Kiraversegame) April 1, 2025
The game claimed that the tokens were “reacquired” through different wallets. If true, this eases some of the bearish outlook on the 40th-largest digital asset.
AAVE Price Analysis
At press time, AAVE is trading at $166.29, reflecting a 7.18% increase in the past 24 hours, shows the data from CoinMarketCap. The resistance at the 20-day exponential moving average (EMA) at $17784 still holds strong.
Meanwhile, the Relative Strength Index (RSI) reads 41.28, meaning it is still in the neutral-to-oversold range.
Source: TradingView
There could be some room for a rebound, but a break below 40 could indicate more downside pressure for AAVE.
The AAVE price action is currently hovering near the lower Bollinger Band at $157.72, which is a critical support level. If this level holds, a bounce toward the mid-band ($174.81) or upper band ($191.90) is possible.
However, if the price falls below $159, further downside toward $128 could follow, as per analyst Reed Carson’s assessment.
$AAVE is still stuck in a downtrend trading inside a descending channel and now if it loses the $159 support level then $128 is the next major zone to watch
If buyers step in there we could see a solid bounce making it a potential long opportunity pic.twitter.com/wvbLrRZpZB
— Reed Carson (@reed_carss) March 31, 2025
Does AAVE Have Long-Term Potential?
Irrespective of the short-term bearish trend, AAVE dominates the DeFi space, controlling about 65% of the market share in the digital asset lending space, according to blockchain analytics platform Token Terminal.
crypto protocols have no moats
but @aave has ~65% market share in the lending sector pic.twitter.com/qIAna2oc4d
— Token Terminal 📊 (@tokenterminal) March 31, 2025
DefiLlama reports that the total value locked (TVL) on AAVE has reached new all-time highs every month since December in terms of ETH, highlighting growing adoption.
TVL on @aave in terms of ETH has hit a new ATH every month since December. pic.twitter.com/CT0Fxb6qG4
— DefiLlama.com (@DefiLlama) March 24, 2025
This fundamental strength suggests that while AAVE might see short-term price fluctuations, its long-term prospects remain strong.
If the price tests the $128 level and buyers step in, it could present a compelling long opportunity for traders.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
