Aave falls as downward price move dominates trading session

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Aave drops 7.8% to $136.2 today

Highlights

Aave introduced three new lending markets on Ethereum through V4, managed by Sentora, offering RLUSD, PYUSD, and OUSD borrowing against approved assets.
The expansion targets both retail and institutional users, aiming to increase Aave's share in the DeFi lending sector.
AAVE/USD trades under short- and medium-term moving averages with strong bearish momentum, price range forecast is $132.02 to $140.38 for the next two to three days.

DeFi product expansion broadens user base amid ongoing selling pressure

Aave has expanded its offerings by launching three externally curated lending markets on Ethereum via Aave V4, with the institutional DeFi firm Sentora managing collateral and loan terms, according to Analyticsinsight. This initiative introduces new borrowing options for RLUSD, PYUSD, and OUSD against approved assets, widening the protocol’s appeal to both retail and institutional users. The product rollout enables Aave to capture additional share in the DeFi lending space, though price action has remained under broader selling pressure.

Oversold technicals and bearish momentum highlight risk of extended decline

On the h1 chart, AAVE/USD is trading below the MA-20 at $143.3 and the MA-50 at $146.02, while holding above the MA-200 at $106.6. The Ichimoku Kijun level at $144.21 serves as immediate resistance. Technical momentum is clearly bearish as indicated by the MACD and ADX, both pointing to ongoing downside, while RSI, Stoch RSI, and CCI all register as oversold. Bull/Bear Power continues to reflect dominant selling on the session, and the Awesome Oscillator is neutral, failing to confirm the trend’s strength. The heavy convergence of oversold oscillators with negative momentum highlights deep selling conditions but also suggests the appearance of early divergence.

Sideways trade likely as breakout scenarios face low probability

Over the next two to three sessions, AAVE/USD is expected to trade within a volatility band between $132.02 and $140.38, with a high probability of the price remaining under pressure. The base scenario is continued consolidation within this range. Should the price move above the immediate resistance at $144.21, it could initiate a bullish reversal, but this scenario carries a low probability. If support at $132.02 breaks, it would signal further downside and confirm that sellers remain firmly in control.

Anton Kharitonov, expert at Traders Union, sees Aave’s recent protocol expansion as a positive move, but believes technical momentum remains decisively bearish. He notes that despite the introduction of new lending markets, AAVE continues to trade below key moving averages and is showing deep oversold conditions. The base case remains a range-bound scenario with risk skewed to the downside unless $144.21 can be decisively reclaimed. "Until buyers regain control above resistance, I consider AAVE vulnerable to further weakness."

Earlier, analysts noted that Aave was in a consolidation phase with heightened volatility, recommending close attention to key technical support levels as sellers remained active. This latest analysis reinforces that view, as persistent downside momentum and deep oversold conditions place added focus on the $132.02 support as the critical threshold in the near term.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.