Aave Whales Acquire 8% of Supply Amid Market Sell-off – Potential Move to $210 Possible IF...

Recent events in the Aave governance saga have created a buying opportunity for savvy investors, allowing them to increase their holdings significantly while the market dips. Notably, whale investors have ramped up their acquisitions during this period, leading to a significant concentration of supply in a select group of addresses.

Key Takeaways

Governance Drama Impact: Aave experienced a governance-related sell-off, causing its price to drop by 20%.
Whale Accumulation: The top 100 addresses now hold 12.92 million AAVE, representing about 8% of its total supply.
Decrease in Selling Pressure: Selling pressure on exchanges has reduced significantly after the governance drama.
Potential Price Rally: If AAVE bulls can reclaim the 50-day Moving Average, a price surge to $210 may be possible.
Support Levels: A drop below $160 could negate the bullish outlook, sending prices back down.

Aave

Aave's Governance Drama and Market Response

The recent turmoil surrounding Aave governance provided a prime chance for seasoned investors to increase their stake in the DeFi platform at lower prices. AAVE's price plummeted by 20%, reaching lows of $143, which resulted in a loss of over $500 million in market capitalization.

During this time, the top 100 crypto addresses increased their holdings to 12.92 million AAVE, equating to roughly 8% of the total supply. As a result, these top addresses now control about 80% of the AAVE total supply.

Aave

Source: Nansen/Jordi

Moreover, the number of whale wallets (those holding over $1 million in AAVE) rose significantly, increasing by 66%. These wallets surged from 120,000 to 200,000, highlighting a strong demand from large holders while many retail investors withdrew during the governance issues.

Aave

Source: Nansen/Jordi

Interestingly, the selling pressure on exchanges has also notably decreased.

Declining Selling Pressure for AAVE

According to data from Santiment, during the peak of the Aave governance controversy and over the Christmas week voting period, the number of AAVE tokens on exchanges increased from 1.22 million to 1.43 million. This surge in token availability contributed to heightened selling pressure, which was reflected in the price dropping from $182 to $143.

Currently, at the time of this writing, the selling pressure has eased to 1.31 million AAVE as tracked by Supply on Exchanges.

Aave

Source: Santiment

It is worth noting that selling pressure declined further after promises from Aave Labs and founder Stani Kulechov to share non-protocol revenue with token holders. Despite the reduction in hostilities, the conclusion of negotiations between the factions remains crucial for a lasting resolution.

Furthermore, the derivatives market demand has stabilized at around $130-$150 million in Open Interest, the same range observed during a subdued market in Q4 2025.

What Lies Ahead for AAVE?

On price charts, AAVE bulls are striving to reclaim the 50-day Moving Average, currently set at $174, for the second time since December. Although they faced a setback once again, a successful reclaim could indicate a market structure shift towards bullish momentum, potentially paving the way for recovery.

Consolidating between the price range of $160 and $174 may allow the bulls to regroup and make another attempt at breaking through this crucial level. If they succeed, a 30% increase to a price of $210-$220 might be achievable.

However, should the price fall below the $160 support level, this would invalidate the bullish perspective, likely dragging the cryptocurrency back down to around $140.

Aave

Source: AAVE/USDT, TradingView

Final Thoughts

In summary, as Aave navigates its governance challenges, shifts in whale activity and changes in market pressure are shaping the potential future of AAVE. Investors should keep a close eye on key support and resistance levels to anticipate further price movements.