The price of Aave (AAVE) fell sharply on February 1, 2026, under pressure from Bitcoin’s decline below $80,000, which dampened risk appetite across the altcoin market. The token was trading near $128.17, down nearly 7% in 24 hours and approximately 18% for the week. Technical analysis indicated a bearish continuation pattern, with the price breaking down from a descending channel and losing key support levels.
The AAVE token faced heavy selling pressure, trading at $128.17 with a 24-hour volume of approximately $544.6 million. Its market capitalization stood near $1.96 billion, reflecting broad altcoin weakness as Bitcoin fell.
Market analysis shared by Alpha Crypto Signal indicated a clear bearish structure. “AAVE is breaking down out of a descending channel. This is actually a sign of continuation rather than a sign of exhaustion,” the analysis stated.
The price moved below the channel’s midpoint and a key EMA region, turning former support into resistance. This technical breakdown kept sellers in control, with the risk of further declines persisting unless the structure reversed.
Macro uncertainty and Bitcoin’s volatility drove risk-off sentiment, leading to sell-offs in altcoins like Aave. This environment made it difficult for the token to find buyers, even near lower demand zones.
After the significant pullback, the market entered a consolidation phase. The technical structure, however, suggested downside risk remained unless AAVE could break key resistance levels and shift its short-term bias.
