Aave (AAVE) is under renewed selling pressure as bearish momentum accelerates. The token recently retested a previously broken ascending trendline β a technical move that often signals potential downside continuation. On-chain and derivatives market data add weight to the bearish narrative, pointing to growing sell-side interest and weak investor confidence.
AAVEβs Spot Taker Cumulative Volume Delta (CVD), a key on-chain indicator that tracks the cumulative difference between aggressive buys and sells, remains firmly in negative territory. This suggests that sellers have dominated since mid-July, and the metric continues to trend lower.
Additionally, short positions in the derivatives market have surged to a one-month high, reflecting growing trader conviction in a potential drop. With both technical patterns and market sentiment turning against AAVE, the risk of a double-digit correction in the near term is increasing.