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05 Aug 2025

AAVE Price Forecast: Bears take control as technical and on-chain signals warn of double-digit drop

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.

AAVE’s 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.
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