AAVE dropped 4% over the past 24 hours, extending a decline that has erased 11.2% from the token since its July 31 high of $101.57. Open interest and spot flows are both turning bearish, and chart signals point to the $88 support zone as the next line in the sand.
Aave's AAVE token fell 4% in the past 24 hours after another push above $100 failed. The token had reached its day's high of $101.57 on Friday, July 31, then dropped 11.2% within the following 48 hours.
Open interest and funding rates turn bearish
Coinalyze data showed a 5% drop in open interest over the past 24 hours, while spot CVD kept declining over the past few days — together pointing to selling pressure in both the speculative and derivatives markets. Funding rates had stayed negative in recent days before flipping toward positive territory, showing traders' willingness to go short.
Aave founder Stani Kulechov also said the protocol plans to scrap 50 reserve assets with low adoption and wind down deployment on six chains.
Chart structure still favors sellers
The swing structure on the 1-day chart remains bearish. The downward continuation was confirmed in May, when a previous swing low at $85.05 was breached and a new low at $57.83 was set.
Anchoring Fibonacci retracement levels to the high before that breakdown, the 78.6% level at $105.81 has not been overcome, and the rejection from the psychological $100 zone signals further downside. The CMF sits below -0.05, pointing to strong capital outflows, while the A/D indicator has been slowly declining since April.
$88 support decides the next move
AAVE oscillated between $88 and $100 for most of July and now trades closer to the lower end of that range. The -DI and ADX both sit above 20 on the 4-hour chart, showing a strong downtrend, while the CMF remains below -0.05 there too.
If bears take the $88 demand zone, an extended drawdown toward $83 and $72 would become more likely.
Source: AMBCrypto
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