An institutional investor that went active again after a year moved 156,690 AAVE, and part of it has reached exchanges. Exchange supply is climbing while AAVE sits in a strong downtrend, and the token now trades near $140 support.
An institutional investor became active again after a year and moved 156,690 AAVE, worth $22.86 million, according to Lookonchain. The move possibly signals a sale, as AAVE continues its sharp decline.
So far, the investor has deposited 62,000 AAVE worth $9.12 million into exchanges. The source says this could mean either an exit or a portfolio reshuffle. If the tokens are sold, they could put significant downside pressure on AAVE.
AAVE exchange supply on the rise
Meanwhile, the supply of AAVE held on exchanges keeps rising. The Exchange Supply Ratio (ESR) rose to a three-week high of 0.1615 as of writing, which reflects more AAVE sitting on exchanges.
Typically, that increases the amount of tokens available for selling. With AAVE declining, the positioning suggests market uncertainty, with traders potentially preparing to sell or hedge.
Can AAVE hold $140?
Price action points the same way. Since facing rejection at $187 nearly three weeks ago, the altcoin has mostly closed at lower lows, with occasional upticks.
The downtrend intensified two days ago after AAVE lost the $160 support level, and the token dropped from around $150 to a low of $141.
Momentum indicators back the bearish outlook. The Relative Strength Index fell below 40, dropping to 38 as AAVE neared oversold levels. The MACD has also moved lower since forming a bearish crossover weeks ago and is now in negative territory.
Therefore, if selling activity persists, AAVE is likely to lose its $140 support and fall to $132. To invalidate the bearish setup, it needs a daily close above $155.
Source: AMBCrypto
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