Bearish Potential For AAVE Price: Analysts Predict Further Decline

• RSI and other indicators signal further declines for AAVE crypto.
• AAVE’s long-term prospects remain strong despite short-term challenges.
• AAVE launched V3 on Aptos testnet, showcasing commitment to growth.

AAVE crypto has come into the spotlight due to its recent price action . Following the November rally, significant shifts have occurred in the crypto market. The bullish momentum has weakened after the December 2024 market correction.

Since the start of 2025, it has shown mixed cues, as there was a brief resurgence, with Bitcoin nearing $100K and AAVE price reaching $360. However, this enthusiasm was short-lived as bearish sentiment took over, following the trends from December 2024.

Despite this, AAVE price recently seen movements have sparked attention. The asset has shown bearish pressure, even though there are several positive long-term factors at play.

AAVE crypto seems poised for long-term growth. It kicked off 2025 by launching AAVE V3 on the Aptos testnet as part of its open governance initiative. It also partnered with Chainlink to enhance its DeFi and saw its ZKsync Era Net deposits exceed $50 Million in a week.

Furthermore, key developments for the sector include the potential impact of the US Bitcoin Reserve and expected regulatory changes. It suggests that the short-term correction may continue, as analyst Ali Martinez posted a bearish forecast on January 11th, using the TD Sequential indicator.

However, Michaël van de Poppe, a crypto analyst, thinks an opportunity is underway in AAVE price after this fall, as the long-term outlook remains strong.

Continue reading to know more.

Analyst Posted AAVE TD Sequential Indicator Projecting an Incoming Crash

In a recent update on social media platform X, crypto analyst Ali Martinez has issued a bearish forecast for the AAVE Price. He notes that the TD Sequential indicator has generated a sell signal on the weekly chart, indicating that AAVE price may be overextended and poised for a significant reversal.

Ali, suggests that AAVE price might be heading toward support levels at $264 and $203, which was the 0.786 Fibonacci level per his drawing.

Analyst’s First Target Achieved, Will AAVE Price Fall for Second Target

Notably, when writing, the first support level given by the analyst has already been breached, with AAVE price trading at $262.

Similarly, various technical indicators further support this bearish outlook. RSI stands at 37.50, signaling that AAVE crypto is approaching the oversold territory. This could lead to additional declines in the weeks ahead.

Meanwhile, the asset’s 200-day exponential moving average is significantly lower than the current price, reinforcing the bearish sentiment.

Likewise, other indicators, such as the MACD and the Awesome Oscillator histogram, are also showing downward trends. The Chaikin Money Flow, also the CMF, has dipped below zero, currently at -0.26, indicating a reduction in inflow and buying pressure.

Moreover, AAVE crypto’s daily trading volume has surged by 49.61%, reaching $386 Million, which may suggest that selling pressure is escalating.

While a correction appears imminent, other analysts like Michaël van de Poppe believe AAVE crypto’s long-term outlook remains optimistic.
Similarly, he further highlights via his chart that a fall is imminent, but it enters near $240 to $250; that’s where the accumulation could begin. While analyst Ali expects a more intense fall but, Michael van de Poppe expects a rebound at the said levels.

If the condition flips, that is, if it rebounds, then AAVE price needs to surpass the $300 resistance level to confirm the rise.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.