AAVE , the cryptocurrency powering the DeFi lending protocol Aave, has caught the attention of market participants who have raised concerns over its price trajectory. Ali Martinez, a prominent crypto analyst, today alerted that AAVE could be headed for a massive plunge, potentially falling to a low of $125. AAVE, which currently stands at $179.83, has been down 13.74% and 25.9% over the past week and month, respectively, indicating its continuing market difficulties. The drop to $125 would mean another huge 30.5% loss for the DeFi token.
Aave dipped amid a wider crypto market downturn, as major assets like Bitcoin and Ethereum experience price declines, currently hovering at $95,979.71 and $3,146.55, down 6.2% and 8.6% over the past week, respectively.
AAVE Forms Head-And-Shoulders Pattern
Ali’s bearish outlook is based on the technical analysis of AAVE’s recent price movements. According to the analyst’s observation, since September 2025, the token has been forming a head-and-shoulders pattern on the daily timeframe, as illustrated in the data above. A head-and-shoulders pattern is normally a bearish formation that signals an uptrend may reverse into a downtrend.
As per Ali’s analysis, AAVE is currently in the process of establishing the right shoulder, with the neckline of the pattern settling at the $158 level, which has functioned as a significant support level.
The $158 level is important because if AAVE falls below this zone, it would confirm the head-and-shoulder pattern and activate greater selling. As revealed by the analyst, if AAVE drops below the $158 support, it could activate a drastic fall, potentially reaching $125.
Why AAVE Price Is Down
Despite Aave gaining MiCA approval for Euro stablecoin ramps, which is typically a bullish catalyst, the asset remains slumped in rounds of losses. On Thursday, November 13, 2025, Aave Labs secured a full MiCA regulatory approval to operate its new stablecoin offering, making it easier for users to access DeFi services in Europe.
The persistent AAVE’s price decline indicates little buyer interest in the market. Among prominent DeFi coins, AAVE is one of the most affected by the broader crypto market downtrend, currently down 13.74% over the past week. Some of the best performers in the DeFi token sector include UniSwap (UNI), MYX Finance (MYX), World Liberty Financial (WLFI), Morpho (MORPHO), and Aster (ASTER), which have been up 23.39%, 19.67%, 14.12%, 11.92%, and 8.35% in the last seven days, respectively, according to metrics sourced from CoinMarketCap.
