Aave and three other tokens — COMP, MKR and REN — have recently shown clear price bottoms, according to on-chain analytics provider Santiment.
The price of Aave has fallen about 2.5% in the past 24 hours and nearly 15% over the last week at the time of writing, with the altcoin’s decline tracking broader losses in major cryptocurrencies such as Bitcoin and Ethereum.
The two largest crypto assets by market capitalization are down around 4% and 3.3% respectively as markets slide, with sentiment pressured by inflation concerns, the US Federal Reserve’s ongoing rate-hike campaign, and geopolitical tensions surrounding the Russia–Ukraine crisis.
Although cryptocurrencies are likely to trade lower while they mirror equity-market losses, Santiment highlights that Aave (AAVE), Compound (COMP), Maker (MKR) and Ren (REN) could present meaningful short-term buying opportunities.
In a “spotting the dips” analysis, Santiment points to the ratio between active deposits and daily active addresses (AD/DAD) as a way to identify when these four altcoins may be trading at distinct bottoms.
“AAVE, COMP, MKR and REN have all shown very clear price bottoms recently. And they have all been correctly signaled by observing how many active deposits have made up the total address activity for [the asset],” the analytics platform noted.
Aave (AAVE)
When examining Aave, Santiment emphasizes the AD/DAD metric:
“It appears that price tends to rise from the lows of this measure. We can infer that low AD/DAD values tend to indicate attractive buying opportunities.”
AAVE chart showing the AD/DAD ratio. Source: Santiment.
On the flip side, the platform explains how rising values of the ratio can signal the opposite price action:
“Higher AD/DAD levels indicate points of distribution, where holders are likely to exit positions. The greater the deposit activity (AD), the higher the panic level among holders.”
Compound (COMP)
Santiment also suggests Compound may be poised for upside. “Compound’s AD/DAD recently dropped to an all‑time low only a few days ago. A good sign,” the firm wrote.
Compound chart illustrating the decline in active deposits relative to daily active addresses. Source: Santiment.
A sustained low AD/DAD reading implies that deposit activity is not dominating address activity, which historically has preceded periods of price recovery for COMP.
Maker (MKR)
Maker’s AD/DAD ratio likewise indicates that the recent sell-off has pushed prices into a reasonable buy range. Santiment notes, however, that the ratio may still have room to move higher, which would correspond with additional downward pressure on price. The platform adds that any further rise in AD/DAD for MKR is expected to be less pronounced than for some other tokens.
That suggests MKR may offer a buying opportunity now, but traders should also be mindful of the chance for further, more modest declines before a stronger rebound.
REN (REN)
REN/USD touched a yearly low on January 24 and staged a decent recovery into February, briefly breaking above $0.40. Yet a roughly 11% decline over the last seven days has left the token struggling near $0.35.
Santiment argues that another “panic” move back toward recent lows could present another attractive entry point for buyers looking to capitalize on a potential rebound.
Overall, Santiment’s analysis underscores the value of on-chain behavior—particularly the relationship between active deposits and address activity—as a signal for spotting dips. While macroeconomic forces and geopolitical risk continue to sway market sentiment and create volatility, these AD/DAD patterns have historically highlighted moments when market participants may consider accumulating selected altcoins at lower prices.
Investors should remember that on-chain indicators provide context but are not guarantees. Market conditions can shift rapidly, and using risk management, position sizing and complementary analysis remains essential when assessing potential entries based on these metrics.