$AAVE Is There a Bearish Case for AAVE?

Yes, there are a few bearish risks to keep in mind even though AAVE has been showing some strength lately:

1. Macro Factors

If Bitcoin faces a correction (especially after its recent halving), altcoins like AAVE often follow with sharper drops.

Rising global interest rates or stricter regulations can weaken DeFi sentiment.

2. Technical Risks

Resistance at $150–155: If AAVE fails to break and hold above this level, it could retrace.

Bearish Divergence: If price goes up but RSI or volume goes down, it could signal exhaustion.

3. Protocol-Specific Risks

Smart contract vulnerabilities or DAO governance issues.

Strong competition from newer protocols (e.g., Morpho, Spark, or real-world asset lenders).

Smart Strategy

DCA Plan (Dollar-Cost Averaging): Split your capital and buy portions at $145, $125, and $105.

Set Alerts: Watch for a breakout above $155 with strong volume = bullish confirmation.

Staking Option: Stake AAVE in the Safety Module to earn yield while holding.