AAVE Price Eyes Rebound After THIS Historic Pattern

Aave Protocol (AAVE) led the top 100 cryptocurrencies by market capitalization in the biggest loss of about 18% over the past 24 hours. The DeFi token has been generally bullish since breaking above its two-and-a-half-year consolidation late in 2024.

As the altcoin was declining, historic price patterns were forming, but the potential to replicate was still uncertain with current market sentiment. Capital outflow led to this huge price crash, but what did it entail?

Why AAVE Crypto Led The Biggest Losers On The Day

To start with, AAVE crypto price crashed 18% in a day following broader market weakness and sell pressure from big players liquidating their holdings.

Specifically, a whale sold 91,356 AAVE at a price of $225 for a total cost of $20.59 million. The multiple settlements were conducted under the CoW Protocol, with bits that averaged approximately $ 500,000 in USDT. The AETHAAVE multisig wallet also sold other positions. These orders were in the millions but were executed in increments.

The sell-off showed that each USDT/USDC receipt was swapped with AAVE. This ensured that a structured unwind occurred through the CoW Protocol, as opposed to a single block.

The settlement path and repeated fills implied the use of TWAP-style execution to reduce slippage when moving out of dollar stablecoins.

Why Could AAVE Crypto Price Rebound?

Despite the massive drop in AAVE crypto price, a historic pattern was forming. From the chart, every time the RSI declined to 40 or lower, AAVE responded with a rebound to the upside. However, not all the bounces were instant.

AAVE crypto appeared to be heading for a second retest of the breakout. The first retest led to a drop to almost $100 before rallying close to $400. The altcoin could also repeat this move if the crypto markets do not improve. If history repeats, AAVE could stabilize as the RSI remains around oversold levels and reaches $400 or higher.

Apart from the technical pattern, fundamentals were also in alignment. As part of the buyback program, the Aave DAO has purchased 100,000 tokens since April 9, 2025. These purchases totaled $24 million, with an average purchase price of $ 239.30.

When writing, the tokens were valued at $25.1 million, reporting a net profit of more than $1 million, equivalent to a 4.36 percent return. This was a strategic action, part of the Aavenomics program aimed at strengthening the ecosystem.

The action explained the utilization of repurchased tokens as security to borrow GHO to expand activities. That demonstrated effective management of the treasury without engaging the reserve, whose value was $213.5 million.

The protocol was also making its name in the real-world assets sector with the launch of the Horizon RWA markets.

Aave’s Horizon RWA Hits Record Highs

As per a post on the protocol’s official page on X, the Horizon RWA market just exceeded $300 million in net deposits. This marked a faster traction bearing the time of the launch.

The total market size, however, dropped to $278.74 million, which meant that there was active borrow utilization and inflows. The 35.6% growth in seven days pointed to the need to trade in tokenized treasury yields.

On the other hand, the liquidity and stability were anchored by RLUSD, which had a 45.9 percent share. The borrowing interest and collateral makeup would re-equilibrate as deposits would keep increasing at a high rate.