Aave price slid on Dec. 22 after a large holder moved a sizable block of tokens into the market, setting off a sharp sell-off over a short period.
The move pushed the token down to around $161.70 at press time, with the price slipping back toward levels that have tested buyers several times this month.
According to on-chain data, a single wallet known as 0xa923 was the driving force behind the move, offloading about 230,350 AAVE, worth about $37.8 million.
The tokens were converted into stETH and WBTC, which increased sell pressure right away and reduced spot market liquidity. The seller reportedly realized a loss of almost $13.8 million despite the size of the transaction, indicating urgency rather than strategic rotation.
Large wallet activity around AAVE has been mixed throughout December. While this latest sale weighed on short-term sentiment, other whales have quietly moved in the opposite direction.
Earlier in the month, one address accumulated more than 310,000 AAVE using recursive borrowing on the protocol itself, while another deployed roughly $35 million into AAVE and related assets during a market dip.
On-chain trends still show accumulation beneath the surface. Over the past month, the top 100 AAVE addresses have increased their combined holdings, and exchange balances continue to trend lower. Falling exchange reserves often suggest reduced immediate selling pressure, even when price action turns shaky.
Institutional interest has also remained visible. Earlier this month, Multicoin Capital purchased roughly $20 million in AAVE through over-the-counter transactions at a price close to $178.
With nearly $100 million in monthly fees and about 87% of sector-wide lending revenue, Aave is still the leading force in DeFi lending.
Despite strong fundamentals, the chart continues to reflect pressure. Lower highs and lower lows indicate that AAVE is locked in a downtrend. Sellers have maintained control of the larger structure as each recent rebound has stalled below earlier resistance.
Price is now pressing the lower Bollinger Band, with repeated failures near the mid-band showing weak follow-through from buyers. The $160-165 zone has acted as support several times, but each bounce has been shallower than the last. A decisive daily close below this area would open the door toward $145-150.
A brief capitulation move was indicated by the volume spike during the whale-driven drop, but activity soon subsided. The relative strength index remains below the 50 line, hovering in the low 40s, which shows weak recovery momentum rather than a trend shift.
Until volume significantly increases, upside attempts toward $175-180 and $190-200 are likely to fail. Price action indicates caution until AAVE can recover its short-term averages, even as long-term holders quietly increase their exposure.
