The AAVE price has dropped 18% weekly due to growing internal disputes within its DAO structure. According to Ananda Banerjee on December 23, large investors took advantage of the dip to accumulate tokens during the last hours. Market volatility affected the valuation significantly while retail users showed clear signs of panic throughout the global trading sessions.
Selling pressure intensified following the emergence of a proposal called “Poison Pill,” which generated uncertainty about the protocol’s control. Exchange supply increased significantly by 16%, reaching 1.42 million units in recent days of trading. Nevertheless, large-scale wallets absorbed the sales flow to maintain stability during this period. Institutional investors maintain a firm stance against the external noise currently affecting the project’s decentralized governance.
On the other hand, Nansen data reveals that whales increased their holdings by 12.63% during the last trading day. This accumulation represents a purchase of approximately 20,600 tokens, equivalent to about 3.1 million dollars. Transaction volume suggests strategic positioning by the sectors with the highest liquidity right now in the market. Furthermore, other public figure wallets added 5 million extra, demonstrating confidence in the AAVE price for the long term.
The technical structure motivating the massive accumulation by whales
Likewise, the chart analysis shows the formation of an inverted head-and-shoulders pattern that usually anticipates a major bullish reversal. Defending the support at 147 dollars is fundamental to avoid a further drop toward the 127 dollar zone. In this way, large buyers seem to be betting on a positive resolution of the internal conflicts. Asset consolidation is a clear signal that the fundamentals remain attractive for regulated capital holders today.
Moreover, the market remains attentive to breaking the resistance located between 182 and 193 dollars soon. A decisive break above this level would confirm the start of a recovery toward 248 dollars in the near future. Therefore, the divergence between the increase in exchange supply and whale buying is a key factor. Absorption of fear by high-conviction investors usually precedes significant upward price movements in the cryptographic ecosystem.
Will the protocol overcome the internal crisis to recover its value?
However, the success of this institutional bet will depend on how the tensions between Aave Labs and the DAO are resolved. Uncertainty regarding revenue flows remains the main obstacle for investors operating with caution at this time. Therefore, a diplomatic resolution of the internal “civil war” could trigger positive sentiment immediately. Operational stability is the minimum requirement to attract massive interest from sector participants once again.
Finally, the underlying technology of this decentralized lending protocol remains one of the most robust in the industry today. Future perspectives will depend on the ability of the governors to align the interests of all parties involved. Although the technical outlook is promising, monitoring support levels will be the primary task for analysts. The community looks forward to news confirming the end of the disputes to return to the path of sustainable growth.
