AAVE has recently shown a phenomenon worth following.

On the surface, it seems that funds are continuously flowing in, but prices have instead reached new lows—this divergence between funds and prices is crucial. All key moving averages have turned bearish, and a downward trend has been established.

What's more interesting is the extreme division of market sentiment: 91% of traders on dYdX are shorting, while 68% on WhiteBIT are firmly going long. Traders on the two exchanges are telling completely different stories.

The liquidation data also speaks volumes—over the past 24 hours, the long liquidation amount is 9 times that of the shorts. This means that those who rushed to buy the dip have been hit the hardest.

From a technical perspective, when a cryptocurrency is in a clear downtrend, the rebounds in between often represent new shorting opportunities. Not all rebounds signify a reversal; many times, rebounds are just meant to attract more participants to enter the market.

The operational thinking is actually very straightforward: when the trend is downward, sell on the rebound, with a target to follow the position at 145. If it breaks 145, the next support is at 138.5. The core logic is to follow the price and not be confused by various positive news.