AAVE Borrowing Volumes Plunge 70% While Nexo Sees 155% Surge
- AAVE Borrowing Decline: AAVE's borrowing volumes for USDT and USDC have plummeted approximately 70% since August 2025, dropping from $6.2 billion to $1.9 billion, reflecting a significant decline in investor risk appetite that could lead to liquidity tightening.
- Nexo Borrowing Surge: In contrast to the market downturn, Nexo experienced a remarkable 155% week-over-week increase in credit withdrawals, reaching $23 million, indicating that users prefer borrowing against collateral rather than liquidating assets, thereby enhancing its role as a liquidity provider.
- Market Sentiment Shift: AAVE's total outstanding loans stand at $16.3 billion, with stablecoins comprising half, and the fluctuating borrowing rates reflect diminished demand for leverage in a bearish environment, suggesting a deep adjustment in the DeFi market.
- Evolving Investment Strategies: As market volatility persists, investors may be shifting towards holding assets instead of panic selling, indicating a maturation of investment strategies, with the potential resurgence of DeFi borrowing contingent on price recovery.
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Technical Analysis for AAVE
Technical Sentiment Analysis for Aave (AAVE) As of , Aave (AAVE) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for AAVE stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, AAVE is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Aave (AAVE) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 47.814 | 70.032 | 94.174 | 116.392 | 140.534 | 162.752 | 186.894 |
| Fibonacci | 70.032 | 87.742 | 98.682 | 116.392 | 134.102 | 145.042 | 162.752 |
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