AAVE RSI/MACD Flow: Sell Signal Confirmed by Price and Volume

The immediate technical setup for AAVE/USDT is clear: a sell rating is prevailing on both the 1-week and 1-month horizons. This confirms a bearish trend is in place, driven by key momentum indicators and confirmed by recent price flow.

The Relative Strength Index (RSI) is a critical oscillator that measures overbought or oversold conditions. While the exact current level isn't provided, the overall technical rating is a "strong sell," indicating the RSI is likely signaling overbought territory or a weakening upward momentum. This aligns with the broader tool's function of identifying when an asset may be due for a pullback.

The Moving Average Convergence Divergence (MACD) measures the strength and direction of price momentum. The MACD histogram, which shows the difference between the MACD line and its signal line, is a key component. A bearish trend is confirmed when the MACD line is below its signal line, resulting in a negative histogram. This setup suggests the short-term momentum is weakening and supporting the prevailing sell signal.

The price action itself validates this bearish flow. The technical rating's "strong sell" conclusion is built from a combination of indicators, including the MACD and moving averages, which collectively point to a market where selling pressure outweighs buying interest. For now, the flow is decisively down.

Liquidity and Open Interest Flow

The total amount of funds allocated in open futures contracts is a critical gauge of market leverage and potential liquidation risk. While the exact figure isn't provided in the evidence, the sheer scale of recent trading volume indicates significant positioning. High-volume days like February 5th ($974M) and February 6th ($824M) saw massive price swings, demonstrating how leveraged flows can amplify volatility and pressure the underlying spot price.

Trading volume provides insight into the strength of price moves. The recent spike to nearly $1 billion on February 5th was a key liquidity event, likely triggering a cascade of liquidations that accelerated the downward move. This pattern of high-volume, high-volatility days shows that the market is not absorbing selling quietly; instead, it's experiencing sharp, leveraged repricing that feeds the bearish momentum.

The current 24-hour trading volume of $309.59 million is a key liquidity metric, with a volume-to-market-cap ratio of 0.1737. This level of daily turnover suggests the market remains active and liquid, but it also means that large sell orders can move the price quickly. The flow is one of high activity, but the direction is decisively down.

Catalysts and Key Levels to Watch

The immediate technical setup is defined by clear support and resistance zones. The price has been rejected at the $124-126 range in recent days, confirming that level as a key resistance. The next major support area is now likely between $110 and $115. A decisive break below this zone would signal a loss of short-term support and could accelerate the downtrend toward lower targets.

Traders should watch for two specific technical triggers to confirm the bearish flow. First, a break below the 50-day moving average would provide a clear signal that the intermediate-term trend has turned down. Second, a bearish divergence on the MACD-where price makes a higher high but the MACD histogram fails to follow-would add momentum confirmation to the existing sell rating.

The current price action confirms the flow is down. The asset is trading at $117.90, down 2.47% over the past day and 7.49% over the week. This consistent decline, especially after the high-volume rejection at resistance, shows the market is actively selling. The path of least resistance remains lower, with the key levels and triggers now in focus.