AAVE Plunges Below Key Support Levels Amid Broader Crypto Weakness
The governance token of the prominent decentralized lending protocol Aave AAVE$272.02 has faced substantial selling pressure through the past 24 hours, dipping briefly below the $270 level.
The DeFi bluechip plunged 5% in the early Thursday session, sliding nearly 10% lower since this week's high. It has modestly recovered later in the day U.S. hours, changing hands at around $272.
The price action occurred amid a weak session for cryptocurrencies with bitcoin on the verge of breaking below $120,000. The broad market CoinDesk 20 Index was down more than 4% during the day.
The technical picture shows bearish momentum for the DeFi major, CoinDesk Research's analysis model suggested.
Losing key support at $273 triggered a cascade of selling, accelerating the decline. Subsequent recovery attempts proved unsuccessful, with the failed rallies confirming sustained selling pressure, the model suggested.
Key Technical Indicators
- Trading volume spiked to 63,651 units, substantially exceeding 24-hour average of 31,013 units.
- Technical resistance established at $280.00 level.
- Breakdown below critical support at $273.00 triggered additional algorithmic liquidation.
- Multiple recovery attempts failed, indicating sustained selling pressure.
