Aave exchange reserves hit 2.23 million AAVE on April 7, signaling rising sell pressure. Data from CryptoQuant analyst Darkfost shows reserves have increased sharply since early February.
At the time of writing, AAVE trades near $86 after falling over 10% in 24 hours. According to CoinMarketCap, the decline reflects weakening sentiment and reduced demand.
Aave Exchange Reserves Move into Distribution Phase
According to CryptoQuant, Binance holds around 1.63 million AAVE. It rose from the 1.57 million AAVE held from early February 2026 after adding more than 60,000 AAVE.
This means that more people are moving their tokens onto exchanges with the intention of selling them. When the current AAVE exchange reserves are compared with the 90-day Moving Average, it shows that it has surpassed this average.
In other words, there has been a significant transition away from accumulation and towards distribution. Prior to this, the Aave exchange reserves declined for several months. These trends are evidence of movement into a phase where sellers dominate buyers.
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Derivative Data Indicates Weak Positions
CoinGlass data regarding the AAVE funding rates across various exchanges showed that it is consistently negative across every major exchange. This shows that more traders believe the token’s price will go lower.
Open Interest has recently risen as the price continues to fall. This indicates an even stronger belief in the possibility of prices continuing to move downward.
There is conviction among derivative traders for short positions. Trends in funding rates indicate a consistent bearish mood in the overall market for AAVE.
Additionally, over $900,000 worth of long positions were liquidated in the last 24 hours. More than 96% of those liquidations came from long positions. There is considerable downward momentum and significant selling taking place.
Aave Price Analysis Confirms Continued Bear Market Conditions
Using the TradingView chart for the AAVE price analysis, the current price is trading under each of the primary EMAs. The 20 EMA is near $100, but the price remains far below it.
Both the 50 EMA and 200 EMA are considerably above current price levels and therefore show a very weak trend.
At present, RSI for AAVE is at 26, which represents extreme oversold territory. However, there are no signs of either bullish divergence or reversal signals emerging.
Additionally, MACD is negative and trending upward as bears continue to gain strength. Volume has picked up dramatically throughout the downtrend, confirming additional seller involvement. The current structure suggests AAVE price prediction remains tilted to the downside.
Market Conditions Create Additional Downward Pressure
Darkfost stated that internal challenges have occurred with the Aave Protocol in recent weeks. Specifically, BGD Labs and Chaos Labs, two key contributors, have both left the protocol.
This has caused a further drop in investor confidence and sentiment. The altcoin’s market has relatively weak conditions for price recovery. Liquidity remains extremely low, which makes it difficult for any significant price movement upward.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
Also Read | Chaos Labs Exits Aave Highlights 3 Major Risk Concerns Behind the Decision
