AAVE down 5.01% amid uncertainty after risk management teams exit: weekly forecast

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Aave falls 5.01% this week

Highlights

AAVE remains under sustained selling pressure, currently trading well below key moving averages and confirming a medium- to long-term bearish trend.
Momentum indicators show persistent downside, with weekly MACD, ADX, and oscillators all signaling strong bearishness and deep oversold conditions.
Expected next-week price range is $81.90 to $99.00, with a bearish tilt and low probability of an upside breakout.

Internal team exits intensify uncertainty amid DAO risk disputes this week

Aave has faced major internal disruptions after Chaos Labs, its primary risk management provider for three years, exited the project due to disagreements over risk strategy and budget demands related to the protocol’s V4 upgrade. This followed the earlier departure of BGD Labs, another essential technical team, raising concerns about future risk oversight and stability. Internal disagreements within the Aave DAO and these corporate departures have introduced uncertainty, even as the protocol continues to report growth in total value locked.

Negative momentum sustained as oscillators flag persistent downside for week

Weekly technical analysis remains negative for AAVE: the price is firmly below all major weekly moving averages, with the MA-20 at $136.26 acting as the closest resistance and MA-50 at $212.35 and MA-200 at $136.74 well above the current price. Support is limited, with volatility at 15.29%, and oscillators such as the weekly MACD, ADX, RSI, Stochastic RSI, and CCI deep in oversold territory. Bull/Bear Power and other momentum readings confirm strong seller dominance, while no bullish divergence is present across key indicators.

Bearish bias holds as consolidation and volatility set weekly outlook

For the next 7 days, AAVE is expected to fluctuate between $81.90 and $99.00, closely tracking weekly volatility and maintaining a bearish bias. There is a very low probability — under 20% — of an upward move, given that none of the principal weekly indicators are in Buy or Strong Buy territory. The baseline outlook anticipates consolidation between the support at $81.90 and resistance near $99.00. Should the asset close below support, further declines are likely, but a breakout above resistance could enable a short-term rebound.

Earlier, analysts noted that Aave was facing sustained selling pressure and increased governance uncertainties following the departure of key technical contributors. The current analysis reinforces this negative outlook, and traders should be wary of heightened volatility and risk of further downside if support at $81.90 fails to hold in the coming sessions.

Source of Data: AAVE Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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