Cryptocurrency lending protocol AAVE has seen conflicting on-chain signals in recent days, placing the asset at an interesting structural point. Blockchain Capital deposited 216,292 AAVE valued at $24.31 million to Coinbase, introducing fresh liquidity as overall exchange reserves dropped 2.31% to $243.59 million, a sign of tightening supply. Meanwhile, AAVE’s price broke above a longstanding descending channel, stabilizing near $111 while defending the $100 support level, with technical indicators hinting at early recovery signals and stronger spot buying demand.
Blockchain Capital deposited 216,292 AAVE worth $24.31 million to Coinbase, even as overall exchange reserves dropped. Data shows reserves declined by 2.31% to $243.59 million, indicating broader accumulation still dominates the market.
The large deposit introduces potential sell pressure, but supply leaving exchanges suggests longer-term holding behavior. This combination has created a situation where institutional movement collides with broader accumulation dynamics.
AAVE’s price recently broke above a long-standing descending channel that guided it lower for months. At the time of writing, the price was stabilizing near $111–$112 while defending the $100-support zone.
The breakout shifted market structure away from persistent lower highs and signaled gradually weakening bearish pressure. The MACD indicator hinted at early recovery signals as the histogram climbed towards 0.71.
Additionally, the Spot Taker CVD turned buy-dominant, reflecting stronger market buy orders over the past ninety days. This hike in buy pressure often supports recovery phases following extended declines.
Finally, a liquidation heatmap highlighted a dense leverage cluster forming near the $116-zone. The data showed approximately 229.18K liquidation leverage concentrated near this level, which often attracts price action.
AAVE’s structural conditions have been improving after breaking out of its descending channel. If buyers continue absorbing supply, the price could gravitate towards the $116 liquidation cluster.
