Key Insights
- AAVE price has crashed by 55% from its highest level in August.
- The total value locked (TVL) in AAVE has continued rising this month.
- Whale and smart money investors have continued to accumulate the token in the past few months.
AAVE price has plummeted since August, despite its fundamentals improving substantially in this period. The token was trading at $180 on Wednesday, down by 55% from the August high of $385. So, will the AAVE token price rebound amid whale buying as falling exchange reserves?
AAVE Price May Benefit From the Ongoing Whale Buying
One key potential catalyst for the AAVE price is that whale and smart money investors are buying the dip. It’s a sign that they expect it to rebound in the near term.
Data compiled by Nansen shows that smart money investors hold 593,209 coins currently worth over $104 million. Their holdings have jumped from this month’s low of 465,350.
Another data shows that whale investors now hold 182,060, much higher than this month’s low of 162,420. Similarly, public figure investors, including Stani Kulechov and Justin Sun, hold 190,488 coins currently worth over $33 million.
Whales, smart money, and public investors increased their holdings. Their industry experience makes this a bullish sign. The amount of Aave tokens on exchanges has been dropping steadily in recent months. It now sits at its lowest level this year.
There are now 4.76 million Aave tokens in exchanges, down from 5.13 million in October. This means that investors have removed over 340,000 coins, currently worth over $59 million, from exchanges.
Token outflows from centralized exchanges are not one of the most bullish aspects in crypto fundamental analysis. This shows that investors are actively moving their tokens to self-custody.
AAVE Total Value Locked is Growing
Meanwhile, AAVE’s network is doing well as the number of users and assets jumps. One of the most important parts of its business is AAVE Horizon, which was launched a few months ago.
This product combines DeFi with real‑world asset tokenization (RWA). It has attracted over $576 million in assets, while total borrows stand at $175 million. Some of its top networks in the ecosystem are Janus Henderson, VanEck, and Superstate.
The total value locked (TVL) in the network has jumped to a record high. Data compiled by DeFi Llama shows that the network has a TVL of over 11 million ETH tokens. It was up from the year-to-date low of 6 million ETH.
A rising DeFi TVL is a sign that users are using the network, which is a bullish thing for the token. This growth will likely continue as the developers work on a high-yield savings app with insurance-backed protection.
At the same time, the network is making substantial sums of money. Data compiled by DeFi Llama shows that the network made $13.2 million last month.
It has made $10 million this month, up from the $8.56 million in the same period last year. Its fees jumped to $74 million this month, also up from $43 million last November.
AAVE Price Technical Analysis
The daily chart indicates that the AAVE price has been trending sharply lower over the past few months. This decline reflects the broader intensification of the crypto market crash.
It moved from the August high of $385 to the current $176, a drop that has cost investors millions of dollars AAVE token has already formed a death cross pattern, which happened in October.
This pattern normally leads to more upside over time, as it means that the short-term momentum is accelerating.
AAVE price has formed a descending channel and is now at its middle. It has also moved below the Supertrend indicator and the Strong, Pivot, and Reverse points of the Murrey Math Lines tool
The most likely AAVE price prediction is continued decline. Sellers are targeting the ultimate support level at $125. This is about 25% below the current level.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
