- 58.9% of top AAVE traders held short positions at press time.
- AAVE’s daily chart formed a bearish divergence and a double-top price action pattern.
Amid the ongoing market uncertainty, Aave [AAVE] appeared poised for a price decline in the coming days, having formed a bearish price action pattern on the daily time frame.
In addition to the bearish price action, another potential factor contributing to AAVE’s negative outlook is market sentiment and the likelihood of profit booking in the altcoin.
In addition to AAVE, other major cryptocurrencies, including Bitcoin [BTC], Ethereum [ETH], and XRP are also experiencing similar trends.
AAVE looks bearish
AMBCrypto’s look at the on-chain analytics firm Coinglass revealed that AAVE’s Spot Inflow/Outflow showedthat exchanges have witnessed a notable inflow of over $5.2 million worth of AAVE.
In the cryptocurrency landscape, inflow refers to the movement of assets from wallets to exchanges, often indicating potential selling pressure that could lead to a price decline.
Besides long-term holders’ recent activity, traders appear to be betting on the short side, anticipating a potential price decline, as reported by Coinglass.
At press time, AAVE’s Long/Short Ratio was 0.79, the lowest since late November 2024. A ratio below 1 indicates strong bearish sentiment among traders.
Source: Coinglass
58.9% of top AAVE traders held short positions at this time, while 41.10% held short positions.
Thus, it appears that traders and long-term holders are leaning more toward short positions, contributing to a bearish outlook for the asset. This trend aligns with the recent formation of bearish price action.
AAVE technical analysis and upcoming levels
According to AMBCrypto’s technical analysis, AAVE has formed a bearish double-top price action pattern. The chart reveals a bearish divergence on the daily time frame, signaling a potential price decline in the coming days.
Source: TradingView
Based on recent price action and historical momentum, the asset is likely to drop by 18% and reach the $290 mark in the near future.
Read Aave’s [AAVE] Price Prediction 2025–2026
Current price momentum
At press time, AAVE was trading near $350 after a price decline of over 9% in the past 24 hours.
During the same period, its trading volume dropped by 28%, suggesting reduced participation from traders and investors amid the bearish price action.
