Aave exchange reserves climb above 90-day MA as key teams exit

Aave selling accelerates. Key contributors exit, exchange reserves climb, and AAVE lost the $100 level.

Top analyst Darkfost calls it a protocol problem, not a market one. He describes a “negative spiral” that began after BGD Labs left, then Chaos Labs followed. These teams set risk parameters and security. Their exit hit credibility with institutions and DeFi users.

On-chain confirms it. Darkfost’s exchange-reserve study shows a steady rise since early February from 2.07M to 2.23M AAVE. Binance holds 1.63M, up from 1.57M. Reserves crossed above the 90-day MA, ending a downtrend in place since April 2025. Darkfost flags this as a regime shift, not a blip. Source: CryptoQuant quicktake.

Price action confirms the break. Rejection at $300–$350 in 2025, then persistent lower highs. AAVE now trades below the 50w, 100w, and 200w MAs.

The last leg down was fast. A drop from ~$180 to sub-$100 with expanding volume suggests forced selling. Attempts to base lack follow-through. Former support now caps as resistance.

Risk level stays elevated while price sits under $110–$120. Until higher highs and key MAs are reclaimed, the downtrend holds.