Aave (AAVE) Technical Outlook Clouded by Bearish Divergence

Aave (AAVE) is maintaining its near-term recovery above the $90.80 50-day Exponential Moving Average (EMA), but the technical outlook suggests a downside bias.

The Aave protocol's V3 deployment on the Monad blockchain has seen over $500 million in deposits over the last month, indicating increased user adoption.

However, retail demand remains weak, with futures Open Interest declining by 6% over the last 24 hours and the funding rate sinking below zero.

The Relative Strength Index (RSI) is flashing a bearish divergence, hinting at subdued momentum. A close below the $90.80 EMA could extend the decline by roughly 20% toward the June 18 low at $70.65.