The Aave (AAVE) market suffered significant losses in the past week as price declined by 17.07% according to data from CoinMarketCap. While the DeFi token has shown some stability in the last 24 hours, certain market indicators suggest the bearish storm may be far from over. Related Reading: DeFi Exploits Plunge 40% In 2024, But Centralized Exchange Losses Soar – Report AAVE Could Crash By 30% If Signal Holds In a recent post on social media platform X, crypto analyst Ali Martinez shared a hawkish prediction on the AAVE market. According to Martinez, the TD Sequential indicator has presented a sell signal on the AAVE weekly chart, suggesting a major decline on the horizon. In trading, the TD Sequential developed by Tom DeMark is used to identify potential turning points in price trades. It basically indicates when an asset’s price is overextended in a particular direction and due for a reversal. Based on Martinez’s forecast, if the TD Sequential sell signal holds, AAVE could undergo a significant correction falling to around $264. However, in the presence of overwhelming selling pressure, the L2 token could be headed for $203, indicating a possible 29.5% decline from AAVE’s current price. Interestingly, this bearish prediction is backed by other indicators. Firstly, Relative Strength Index indicator has a value of 62.57 indicating that AAVE is still far from the oversold zone and may experience further decline in the coming weeks. Furthermore, the asset’s 100-day simple average is also far below the current price which can be interpreted as another bearish signal. Clearly, there’s much need to apply caution in engaging the present market. At press time, AAVE trades at $290.04 after a slight 2.48% gain in the last 24 hours. However, its daily trading volume has dipped by 48.99% which may potentially indicate that selling pressure is beginning to ease up. Related Reading: Altcoins Surge As Crypto Market Kicks Off 2025 On A High Note Aave Set To Launch V4 Despite the ongoing price struggle, the Aave protocol continues to record positive development. Most recently, NewsBTC reported that Aave registered $35 billion in total net deposits, representing an all-time high value since 2021. In addition to this, the DeFi protocol is preparing to launch its V4 network upgrade that is expected to introduce advanced risk tools and unified liquidity among other benefits. According to data from DeFiilama, AAVE continues to rank as the second largest DeFi protocol with a Total Value Locked (TVL) of $20.4 billion. The decentralized lending platform falls only behind liquid staking protocol Lido Finance which boasts of a TVL of $31.60 billion. Featured image from iStock, Chart from Tradingview
AAVE founder Stani Kulechov says he “rarely” ever thought about his health while reflecting a day after completing critical surgery.
Another DeFi protocol fell victim to an exploit on Friday morning. Dough Finance, an open-source protocol to create non-custodial liquidity markets, suffered a flash loan attack that took nearly $2 million in user funds. The project’s team announced they are working to resolve the situation promptly. Related Reading: SEC’s Crypto Stance Is ‘Anti-Investor’: CoinRoutes CEO […]
DeFi lending protocol UwU Lend has suffered two attacks in the past three days. The second exploit occurred on Thursday during the protocol’s reimbursement process from the first hack. The ongoing saga has taken around $23 million from the protocol. Related Reading: ZkSync Faces Backlash Amid Token Airdrop Controversy DeFi Protocol Hit With $20 Million […]