AAVE Price Prediction: Technical and On-Chain Signals Alert, Short Positions Pressure May Trigger Double-Digit Fall

Aave (AAVE) has recently attracted significant attention in the market due to its price movement. As technical indicators weaken and on-chain and derivation data synchronously signal bearish trends, AAVE is facing a new wave of dumping pressure. The CVD of spot traders remains negative, and the Long-Short Ratio has reached a one-month low, with short positions dominating the market data. Will AAVE experience a double-digit level pullback? This article takes you deep into the latest technical and on-chain signals.

AAVE's technical indicators weaken, price retests the ascending trendline

In the past week, the price of AAVE broke below the upward trend line that has been in place since early April, falling 5% within two days. Although it found temporary support at the 200-day EMA ($242.27) on Sunday and rebounded by 8.68% on Monday, the current price still hovers around $262.13, failing to effectively recover lost ground. If AAVE cannot hold above the 200-day moving average, it may further decline to the 50% pullback level of $225.64.

on-chain and derivation data synchronization releases bearish signals

CryptoQuant data shows that AAVE's Spot Taker CVD (Cumulative Volume Delta) has been continuously declining since mid-July, remaining in negative territory for a long time, indicating that selling pressure dominates the market. Coinglass Long-Short Ratio is only 0.82, hitting a new low in over a month, showing that more and more traders are betting on AAVE's fall, with a strong bearish sentiment.

Momentum indicators are weak, short-term pullback risks are increasing

The technical indicators further reinforce the bearish outlook. The AAVE daily RSI is at 40, below the neutral 50, indicating weak momentum. The MACD indicator also shows a death cross, extending the bearish momentum. If the price falls below the 200-day EMA, it may trigger larger-scale stop-loss selling pressure, and a double-digit percentage pullback cannot be ruled out in the short term.

Potential Rebound Targets and Key Resistance

Although the current short positions dominate, if AAVE can rebound against the trend and stabilize above the daily resistance level of $282.84, it is expected to challenge the July 18 high of $349.23. However, in the context of a comprehensive weakening of technical and on-chain signals, investors should remain highly cautious and closely monitor changes in key support and resistance levels.

Conclusion

AAVE's current technology and on-chain data are signaling warnings, with short positions pressure continuing to strengthen. The risk of a short-term double-digit fall should not be ignored. It is recommended that investors carefully observe the 200-day EMA and the pullback support at $225.64, proceed with caution in their layouts, avoid blind bottom-fishing, and grasp the market rhythm.