AAVE Plunges Below Key Support Levels Amid Broad Crypto Weakness
The governance token of the decentralized lending protocol Aave (AAVE) experienced significant selling pressure, dipping below $270. It fell 5% in early Thursday trading, showing a nearly 10% decline since this week’s high, before recovering slightly to $272.
This price movement coincided with a weak session for cryptocurrencies, where Bitcoin was close to breaking below $120,000, and the CoinDesk 20 Index dropped over 4%.
Key Technical Indicators
- Trading volume reached 63,651 units, surpassing the 24-hour average of 31,013 units.
- Technical resistance was noted at $280.
- Breakdown below the critical support at $273 led to further algorithmic liquidation.
- Repeated recovery attempts failed, indicating ongoing selling pressure.