21Shares Moves $1.1M AAVE to Flow Traders in Potential Liquidity Grab

VADODARA, January 16, 2026 — An address linked to crypto ETP issuer 21Shares transferred 6,520 AAVE ($1.11 million) to market maker Flow Traders four hours ago. This latest crypto news follows a three-week pattern of institutional selling pressure. According to The Data Nerd's on-chain forensic report, the firm has moved 35,700 AAVE ($5.74 million) to exchanges and Flow Traders since late December.

Market Context & Background

Institutional rebalancing has intensified since Q4 2025. Market makers like Flow Traders typically execute large orders with minimal slippage. This creates immediate liquidity pressure. The pattern mirrors 2023's post-ETF approval sell-offs where ETP issuers liquidated holdings to manage treasury risk. According to Ethereum.org documentation, AAVE's governance token mechanics involve complex staking dynamics that can amplify sell pressure during market-neutral periods. Related developments include Samsung's infrastructure investments and regulatory actions against crypto lenders.

What Happened?

On-chain data indicates the 21Shares-associated address executed the transfer at 08:00 UTC. Flow Traders received 6,520 AAVE tokens. Transaction hash analysis confirms this as part of a larger series. Over three weeks, 21Shares has moved approximately $5.74 million worth of AAVE to counterparties. The consistent pattern suggests systematic treasury management rather than panic selling. According to Etherscan data, these transactions show typical market maker routing behavior.

Technical Analysis & Price Action

AAVE currently trades around $170. The 50-day moving average sits at $175. RSI reads 45—neutral with bearish divergence. Volume profile shows increased selling volume at the $172-175 range. A Fair Value Gap (FVG) exists between $165 and $168. This gap represents untested liquidity that market makers may target. Bullish invalidation: A break below $160 would invalidate the current consolidation structure. Bearish invalidation: A sustained move above $185 would signal absorption of sell pressure.

By The Numbers

Why It Matters

Institutional flows dictate short-term price action. Market makers like Flow Traders provide liquidity but also profit from volatility. This transfer signals potential gamma squeeze conditions if options markets are mispriced. Retail holders face increased sell pressure near resistance levels. According to SEC.gov filings, ETP issuers must maintain liquidity buffers—explaining the systematic selling pattern. The move impacts AAVE's defi governance participation rates.

Community Sentiment

Market analysts on X/Twitter note the "order block" formation at $172. One quant trader posted: "Flow Traders receiving AAVE suggests institutional rebalancing, not capitulation." Another observed: "The volume profile shows absorption at $168, but if that breaks, we test the FVG." Sentiment remains cautiously neutral with no panic selling detected in retail wallets.

Price Prediction / Future Outlook

Bullish Case: If AAVE holds above $165 and absorbs the sell pressure, a retest of $185 resistance is likely. This would require increased buying volume from defi participants. On-chain data indicates some accumulation at current levels.

Bearish Case: A break below $160 triggers a liquidity grab into the FVG. This could push AAVE toward $155 support. The 21Shares selling pattern suggests continued pressure if market sentiment deteriorates.