Analyst Posted AAVE TD Sequential Indicator Projecting an Incoming Crash

AAVE crypto has recently seen a lot of attention due to its price movements. After the rally in November, there have been big changes in the crypto market. The bullish momentum has gotten weaker after the market correction in December 2024.

Since the beginning of 2025, there have been mixed signals, with a brief rally where Bitcoin went close to $100K and the AAVE price reached $360. But this excitement didn't last long, as bearish sentiment took over, continuing the trend from December 2024.

Despite this, the recent movements in the AAVE price have caught people's attention. The asset has faced bearish pressure, even though there are several positive factors impacting it in the long term.

AAVE crypto seems to be set up for growth over the longer term. It started 2025 by launching AAVE V3 on the Aptos testnet as part of its open governance initiative. It also worked with Chainlink to improve its DeFi and saw its ZKsync Era Net deposits go over $50 Million in a week.

Moreover, the key developments for the sector include the potential impact of the US Bitcoin Reserve and expected regulatory changes. It suggests that the short-term correction may continue, as analyst Ali Martinez posted a bearish forecast on January 11th, using the TD Sequential indicator.

However, crypto analyst Michaël van de Poppe thinks an opportunity is underway in AAVE price after this fall, as the long-term outlook remains strong.

Continue reading to know more.

Analyst Posts AAVE TD Sequential Indicator, Projecting an Incoming Crash

In a recent update on social media platform X, crypto analyst Ali Martinez has shared a bearish outlook for the AAVE Price. He notes that the TD Sequential indicator has triggered a sell signal on the weekly chart, suggesting that the AAVE price might be overstretched and poised for a deep correction.

Ali suggests that the AAVE price could be heading toward support levels at $264 and $203, which were the 0.786 Fibonacci level as per his drawing.

Analyst’s First Target Achieved, Will AAVE Price Fall for Second Target

Interestingly, at the time of writing, the first support level given by the analyst has already been breached, with the AAVE price trading at $262.

Several technical indicators also support this bearish outlook. The RSI is at 37.50, which shows that AAVE crypto is entering the oversold zone. This could lead to further declines in the coming weeks.

The asset’s 200-day exponential moving average is also significantly lower than the current price, which adds to the bearish sentiment.

Other indicators, like the MACD and the Awesome Oscillator histogram, also show a downward trend. The Chaikin Money Flow, also the CMF, has dipped below zero, currently at -0.26, indicating a reduction in inflow and buying pressure.

Furthermore, AAVE crypto’s daily trading volume has surged by 49.61%, reaching $386 Million, which may suggest that selling pressure is escalating.

While a correction appears to be on the horizon, other analysts, like Michaël van de Poppe, believe that AAVE crypto’s long-term outlook remains bullish.

Similarly, he further highlights via his chart that a fall is imminent, but it enters near $240 to $250; that’s where the accumulation could begin. While analyst Ali expects a more intense fall but, Michael van de Poppe expects a rebound at the said levels.

If the condition flips, that is, if it rebounds, then AAVE price needs to surpass the $300 resistance level to confirm the rise.

The views, and opinions stated by the author, or any people named in this article, are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.