The price of AAVE has faced significant downward pressure, declining nearly 5% in the last 24 hours and over 18% in the past week. This weakness coincides with escalating governance disputes within the Aave DAO, creating uncertainty around protocol control and revenue flows. The tension stems from a controversial "poison pill" proposal introduced on December 16, which would allow the Aave DAO to seize control of Aave Labs' intellectual property, brand, and equity.
On-chain data reveals a clear divergence in market behavior. Since the proposal date, the supply of AAVE on exchanges has surged from approximately 1.22 million tokens to about 1.42 million—an increase of nearly 200,000 AAVE (16%) in just over a week. This movement typically signals potential selling pressure, which is reflected in the token's price decline.
However, large holders are moving against this trend. Over the past 24 hours, AAVE whales increased their holdings by 12.63%, accumulating roughly 20,600 tokens worth about $3.1 million. Simultaneously, public figure wallets raised their holdings by 13.55%, adding approximately 32,700 tokens worth $5 million. Combined, these cohorts added over 53,000 AAVE (valued at more than $8 million) directly into the market weakness.
Technically, AAVE is trading around $151.67, near the lower Bollinger Band and well below its 20-day average near $184.08. The 14-period RSI hovers at 34.06, indicating bearish momentum without being extremely oversold. Analysts note the token is defending the $147 support zone, potentially forming the head of an inverse head-and-shoulders pattern. A decisive break above $182 could signal a trend reversal, while a loss of $147 support could trigger further selling toward $127.
