Crypto Downturn Pushes AAVE Below Critical Support Levels

Aave’s governance token (AAVE) fell sharply Thursday, briefly dropping below $270 as selling pressure intensified across the cryptocurrency market.

The DeFi bluechip lost 5% in early U.S. trading, wiping out nearly 10% from this week’s high, before recovering slightly to around $272. The broader market also struggled, with Bitcoin hovering near $120,000 and the CoinDesk 20 Index down more than 4%.

Technical Overview
CoinDesk Research highlighted bearish momentum for AAVE. Breaching the $273 support level triggered accelerated selling, and subsequent recovery attempts failed.

Key indicators:

• Trading volume surged to 63,651 units, exceeding the 24-hour average of 31,013 units.
• Resistance formed at $280, capping upward moves.
• Algorithmic liquidations followed the support breakdown, amplifying downward pressure.