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An institutional holder moved 156,690 AAVE, valued at $22.86 million, and has so far placed 62,000 AAVE worth $9.12 million onto exchanges, according to Ambcrypto, citing Lookonchain. The wallet had been inactive for a year before the transfers.
The timing matters because AAVE is already in a steep decline. The token lost its $160 support level two days before the report and slid from roughly $150 to a low of $141, leaving the $140 line as the next level traders are watching.
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Key facts
- An institutional investor moved 156,690 AAVE, worth $22.86 million, after a year of inactivity.
- The same holder has deposited 62,000 AAVE, worth $9.12 million, into exchanges so far.
- AAVE’s Exchange Supply Ratio climbed to a three-week high of 0.1615.
- AAVE fell from about $150 to a low of $141 after losing $160 support.
- The token’s RSI dropped to 38, and its MACD moved into negative territory.
Exchange balances point to selling capacity
Large transfers onto exchanges can mean either an exit or a portfolio reshuffle, and Ambcrypto notes both possibilities. Whichever it is, the tokens now sit where they can be sold, and the exchange supply data tells the same story.
The Exchange Supply Ratio, which measures how much of a token’s circulating supply sits on exchanges, reached 0.1615. A higher reading means more coins are immediately available to sell, which typically signals heavier potential selling pressure. With the price falling at the same time, the positioning suggests traders are preparing to sell or hedge against further declines.
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Momentum gauges stay bearish
The technical picture offers little counterweight. AAVE has posted mostly lower closes since it was rejected at $187 almost three weeks before the report, with only occasional rebounds. The break below $160 sharpened that trend.
The Relative Strength Index fell below 40 and sat at 38, edging toward oversold territory but still reflecting prevailing bearish momentum. The Moving Average Convergence Divergence indicator has been falling since a bearish crossover weeks earlier and is now in negative territory. Together they suggest the current direction could persist.
On that reading, continued selling would likely push AAVE below $140 and toward $132. The bearish case would be undermined by a daily close above $155.
Why it matters
AAVE is one of the larger DeFi tokens, so sustained weakness in its price affects holders, liquidity providers and traders using it as collateral. Exchange deposits by a holder that sat out a full year are a signal worth watching: long-term holders selling into a downtrend can deepen a decline faster than routine trading flow. The setup mirrors earlier stress points in the token’s recent slide, though the move by a dormant institutional wallet is the most concrete new supply-side development described in the report.
What to watch
The immediate data point is whether AAVE holds $140 on a daily close. A close above $155 would weaken the bearish case, while further deposits from the same wallet would add to exchange supply.
This article is not financial advice. Cryptocurrency markets are volatile and prices can move sharply in either direction.
Reported by ambcrypto.com.
Source: AMBCrypto