Aave gains 30% as key contributors exit, tests $120 resistance
Aave rebounds 30% after 81.6% drawdown; tests $115–$120 resistance
Aave (AAVE) jumped over 30% since Monday. The bounce comes after deep losses and key contributor exits.
Analyst Darkfost frames the move as a test of confidence. Chaos Labs left Aave’s risk stack, citing strategy misalignment, rising V4 complexity, and unsustainable economics despite a $5 million budget proposal. ACI and BGD Labs had already stepped away, raising continuity questions for the protocol’s risk framework.
Drawdown data shows the scale. Bitcoin is ~40% off its ATH, while Aave is down 81.6% from peak per CryptoQuant analysis. The gap highlights capital rotating to BTC as altcoins absorb heavier selling during the broader market correction.
Technicals show a fragile turn. After a capitulation sub-$100 in early February, price based around $95–$115. The push into $115–$120 is the first attempt to reclaim broken support as resistance.
Volume improved, but conviction is moderate. A close and hold above $110 would help build momentum. A higher high above $120–$130 would be the first structural bullish signal. Failure to hold risks a return to the prior range.
