With the initial drop complete, the focus has now shifted to positioning. Open Interest (OI), which declined during the liquidation phase, has started to rise again, but the price has not shown a strong recovery. This matters. When OI builds while the price remains weak, it often signals new positions entering without clear directional control.
In many cases, this leans bearish, as markets tend to continue lower when fresh positions build into weakness. At the same time, it also increases the risk of sudden volatility if those positions get squeezed.
What Happens Next for the AAVE Price Rally?
The initial trigger is known. The liquidation phase has played out. Now, the AAVE price is entering a more uncertain phase where positioning and reaction at key levels will decide direction. Whether this turns into stabilization or another leg lower will depend on how the market responds here, but for now, the pressure hasn’t fully eased.
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