- AAVE has dropped 14.01% in a week, with further declines expected before recovery.
- AAVE seeks support between $135.34 and $116.21, potentially triggering a rebound toward $200.
- Retail selling drives the drop, while whale inactivity could shift once demand zones are reached.
Over the past week, Aave (AAVE) dropped by 14.01%, followed by an 11.89% loss in the last 24 hours. Once a market leader, AAVE now struggles to regain momentum. But there may be a silver lining ahead, as technical analysis suggests a potential rebound to a key demand zone.
AAVE Seeks Support at a Critical Price Level
AAVE continues to drop, yet this downturn might not last forever. Experts believe a demand zone exists between $135.34 and $116.21. This range could offer the support needed to reverse the trend.
If the token finds stability here, AAVE might target previous highs, possibly reaching $200 again. The key question is whether AAVE can hold at this demand zone before falling further. If this level holds, a recovery could be on the horizon, setting the stage for a strong rebound.
Retail Traders vs. Whale Inactivity
Retail traders have been a major factor in AAVE’s decline. Active addresses surged recently, signaling a rush to sell. In just 24 hours, the number of active addresses hit 1,220. Despite this, whale activity remains neutral. Large holders haven’t made big moves lately, with transactions dropping from 334 on November 12 to 126 now.
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This lack of whale involvement may change if AAVE reaches the lower end of the demand zone. At that point, whales might step in, seeing an opportunity to buy. If that happens, AAVE could see a sharp reversal.
Long-term market sentiment for AAVE remains positive. More traders are moving their holdings off exchanges, reducing the circulating supply. This signals confidence in AAVE’s potential. With fewer tokens available for sale, demand could rise, and a rebound becomes increasingly likely.
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