Multicoin dumps 150K AAVE: Will mounting losses trigger another breakdown?

AAVE slipped toward key support after Multicoin Capital moved 150,000 tokens while holding more than $40M in unrealized losses during Friday trade.

Large holders intensified market pressure after Lookonchain revealed fresh AAVE transfers toward Galaxy Digital OTC and BitGo. 

Multicoin Capital had accumulated 338,005 AAVE near an average price of $218 during late 2025. However, AAVE traded near $96 during the latest session, leaving the position deeply underwater. 

The recent 150,000-token transfer, valued near $14.92M, raised fresh concerns across derivatives markets and Spot positioning. Traders increasingly questioned whether institutional wallets had started reducing exposure after months of persistent weakness. 

In turn, broader market sentiment weakened as AAVE continued struggling beneath major resistance levels despite repeated stabilization attempts near range support. 

Derivatives traders reduced exposure rapidly

Open Interest declined 6.75% to $278.76M as leveraged traders reduced participation during growing uncertainty around AAVE’s direction. This suggested that traders had started closing positions rather than aggressively adding exposure near current levels. 

Furthermore, derivatives activity reflected weakening confidence despite temporary stabilization around support. 

Reduced Open Interest often signals declining speculative conviction, especially during prolonged consolidation periods. Traders likely avoided aggressive positioning because price structure continued lacking a decisive breakout above resistance. 

Funding activity also appeared restrained during the latest session. In addition, market participation slowed while institutional transfers dominated trader attention. 

AAVE stayed trapped inside the key range

AAVE continued consolidating between the $87.60 support and the $131.18 resistance throughout recent months. Price repeatedly rejected higher levels before returning toward the lower boundary of the range. 

However, buyers still defended the $87 region aggressively during repeated downside attempts. The MACD indicator also approached a bullish crossover near the zero line, signaling that bearish pressure had started weakening slightly. 

Histogram bars gradually shifted closer toward neutral territory during recent sessions. Even so, price still lacked strong expansion above resistance. Traders likely waited for confirmation before committing to larger directional positions. 

If bulls reclaimed the $131.18 resistance decisively, AAVE would likely target higher liquidity zones that previously triggered repeated rejection phases.

Long liquidations absorbed recent volatility

Liquidation data showed long liquidations rising above $224K while short liquidations remained near zero. The imbalance revealed that bullish traders absorbed most of the recent volatility during AAVE’s decline toward support. 

Several exchanges, including Hyperliquid and Bybit, recorded notable long-side liquidations during the session. However, bearish traders avoided major squeezes because price never accelerated sharply upward. 

Liquidation behavior also reflected cautious positioning across derivatives markets after Multicoin’s transfers surfaced publicly.

Conclusively, AAVE’s structure remained fragile after institutional transfers intensified market uncertainty and derivatives activity weakened. However, buyers still defended the $87.60 support consistently. 

If bullish participation strengthened near current levels, AAVE would likely attempt another move toward the $131.18 resistance zone despite ongoing sell-side concerns.

Final Summary

• Multicoin’s large AAVE transfers increased caution as traders reduced leveraged exposure rapidly.
• AAVE continued holding key support, although resistance pressure still limited stronger recovery attempts.