A significant transfer of Aave tokens has occurred as the cryptocurrency experiences a sharp decline. According to blockchain analytics, an institutional investor moved 156,690 AAVE tokens worth $22.86 million after remaining inactive for approximately one year. Of this amount, 62,000 AAVE tokens valued at $9.12 million were deposited into exchanges.
The movement of tokens to exchange platforms typically signals either a potential sale or portfolio reallocation. Large deposits to exchanges can increase available supply for selling, potentially adding downside pressure to the token's price.
Exchange Supply Increases
The inflow of AAVE to exchanges coincides with a broader trend of rising supply on exchange platforms. The Exchange Supply Ratio reached a three-week high of 0.1615 as of the report's writing, indicating that more AAVE is currently held on exchanges compared to recent weeks. Higher exchange supply generally reflects increased availability for potential sales.
Technical Deterioration
AAVE has entered a pronounced downtrend after facing rejection near $187 approximately three weeks prior. The token lost the $160 support level two days before the report, subsequently declining to a low of $141.
Momentum indicators reflect bearish conditions. The Relative Strength Index fell to 38, signaling oversold conditions and prevailing bearish momentum. The MACD indicator has been in decline since a bearish crossover several weeks ago and has entered negative territory, further supporting the bearish technical setup.
Analysts note that continued selling activity could push AAVE below its $140 support level toward $132. A daily close above $155 would be required to invalidate the current bearish technical pattern.
