AAVE Price Tumbles 6.1%, Heads Towards $129 Demand Zone

AAVE is experiencing a significant drop of 6.1% on September 20th, trading at $136.74. This decline comes as momentum flatlines and taker sell flow dominates the tape.

The asset's price has been rejected from the upper Bollinger Band, causing it to hug the day's lows. The technical picture suggests that AAVE is due for a mean-reversion move from the upper band to the middle band, which aligns with the $129.17 strong support level and the $129.40 middle Bollinger Band.

The derivatives market is quietly unwinding, with open interest contracting by 3.54% over the past 24 hours. Smart money is positioned 60.5% long versus 39.5% short, indicating that top traders are holding onto their long exposure despite the sell-off.