AAVE (Aave) Falls to $128 as Descending Channel Breakdown Signals Further Risk
Aave (AAVE) continued to face heavy selling pressure on Sunday, February 1, 2026. The weakness in the broader markets and the fall in the price of Bitcoin below the $80,000 mark have had a bearing on the prices of other altcoins.
Currently, the price of the token is $128.17. In the past 24 hours, the token has lost 6.98%. The 24-hour trading volume for the token is $544.62 million. At the same time, the market capitalization is close to $1.96 billion. In the past week, the token has lost close to 18%.
Source: CoinMarketcap
AAVE Technical Breakdown Keeps Sellers in Control
From a short-term price structure perspective, we have a very clear bearish structure on AAVE. Market analysis and commentary shared by Alpha Crypto Signal indicates the following:
“AAVE is breaking down out of a descending channel. This is actually a sign of continuation rather than a sign of exhaustion.”
From here, we have seen price move below the channel midpoint and the key EMA region. This region was previously a point of support; however, it is now a point of resistance. As long as the price remains below this region, we are seeing sellers dominate the market with a retest expected.
Source: Alpha Crypto Signal X post
As per the analysis, the bearish continuation is more favored unless AAVE reverses the broken structure convincingly.
The short-side setup will be more valid in nature when the price retests the former channel support with a rejection, preferably with bearish candles and rising sell volume. A move inside the channel will invalidate the bearish scenario.
Also Read: AAVE Struggles at $144 Support Despite Strong DeFi Fundamentals
Macro Pressure and Bitcoin Weakness Drive Decline
The recent losses in AAVE can be attributed to the rise in macro uncertainty and volatility in risk assets. Bitcoin’s strong move below $80,000 has led to increased risk-off sentiment, which has led to sell-offs in altcoins.
The risk-off sentiment has led to a decrease in appetite for risk assets. In these market conditions, it has been difficult for the token to find buyers even as it approaches the lower demand zones.
Market Pause, But Downside Risk Persists
After the significant pullback, the market seems to be consolidating, which may provide some relief for the market from the recent selling pressure.
Nevertheless, the technical structure of the market shows us that the risk of a further downside is not yet entirely removed.
Unless the price of AAVE breaks the resistance levels and changes the short-term directional bias, the price may continue falling towards the next demand level.
Traders are advised to be watchful as the macro market and the Bitcoin price continue to influence the sentiment of the cryptocurrency market.
Also Read: Aave (AAVE) $400 Million RWA Inflows Could Fuel Recovery Toward $390
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