AAVE is trading at $74.87, and technical indicators are flashing red. The MACD has formed a dead cross — a classic bearish signal. The Stochastic oscillator sits in overbought territory. On top of that, the market is crowded with long positions, and aggressive selling is outpacing buying by a wide margin. Traders are bracing for a potential drop to $69 in the coming days.
Why the indicators point lower
The MACD dead cross happens when the shorter-term moving average crosses below the longer-term one. It's not a guarantee of a decline, but it often precedes one. Combined with an overbought Stochastic — which suggests the asset is due for a pullback — the technical picture looks weak. These two signals together have historically caught many traders off guard.
Heavy long crowding raises the stakes
Data shows a large number of traders are holding long positions in AAVE. That creates what's known as long crowding. When too many people are betting on a price increase, any sudden move downward can trigger a cascade of forced liquidations. That's the long squeeze scenario: selling begets more selling, accelerating the drop.
Sell pressure dominates the order book
The taker sell ratio currently stands at 1.5 to 1 against buyers. That means for every 1.5 units of AAVE sold aggressively, only 1 unit is being bought. It's a clear sign that sellers are in control. When aggressive selling coincides with crowded longs, the risk of a sharp decline grows.
A possible $69 target
Given the current setup, a move to $69 isn't out of the question. That level is roughly 8% below today's price. If the long squeeze materializes, the drop could happen quickly — within days, not weeks. Whether AAVE can hold support at that level is the open question traders are watching.
