- The current consolidation trend in AAVE crypto price could retest $123 resistance for channel pattern breakout.
- Blockchain data shows a trader swapped nearly $50 million USDT for only 324 AAVE tokens on the Aave platform, indicating a slippage of 99%.
- The downsloping trend of 100 and 200 day EMA slope indicate the broader market trend remains bearish.
AAVE, the utility asset of decentralised finance (DeFi) protocol, AAVE, recorded heightened volatile during Friday’s U.S. market hours to trade at $112. During the broader market uptick, the AAVE price pushed to $x mark, but faced an immediate rejection as January inflation data at 2.8 raised the market odds for elevated rate cut. In addition, the protocol faced investors scrutiny as a crypto trader loses millions of dollars while swapping USDT To Aave crypto.
Crypto Trader Loses Millions in Aave Swap After Ignoring Slippage Warning
According to Blockchain data, a crypto trader recently executed a huge swap on the Aave platform where he converted around $50 million in USDT, into just 324 AAVE tokens — a result that is valued at approximately $36,000 at the time.
The attempt involved sending the funds through the Aave interface, which integrates CoW Swap to execute the order. Due to the extreme order size compared to available liquidity, the system had a highly visible warning for extreme slippage and required explicit approval in the form of a checkbox.
The routing mechanism through CoW Swap worked as normal and was consistent with common DeFi integration standards; even as the end result was a disaster.
Aave founder Stani Kulechov said he was worried about the affected party. “We sympathize with the user and will try to make a contact with the user and we will return $600K in fees collected from the transaction.”
Reactions within the community became bitterly divided. Critics pummeled the front-end for allowing a transaction with more than 99% price impact to take place, which they argue hurts trust on the platform and hinders mainstream adoption. Others countered that responsibility falls to the trader who knowingly overrode the clear risk notification.
Meanwhile, the derivative trading in AAVE futures remains stagnant for an extended period. According to Coinglass data, the open interest tied to AAVE futures contract witness sideways trend around $200 million.
This lateral trend suggests lack of fresh inflow and a cautious behaviour from traders as they withdraw from leverage positions.
AAVE Crypto Price Extends Correction Trend within Channel Pattern
Since October 2025, the AAVE crypto price has recorded a steady downward trend resonating within two parallel trendlines of a falling channel pattern. The coin price bounced several times within the pattern trendlines indicating how strongly it influenced the short-term trajectory of price.
Currently, the AAVE crypto trades at $111.8 mark, positioned just 10% from the pattern overhead trendline. If the bullish momentum persists, the coin price could surge to $123 mark and challenge the resistance trendline for breakout. A successful flip of this resistance into potential support will accelerate market buying pressure as push the asset to $180.
However, the potential retest would also indicate if supply pressure persists at this resistance. If sellers retained their control over AAVE crypto at this high area of interest (AOI), the coin price could initiate another bear cycle within the channel and drive an extended market correction.
