AAVE has fallen sharply in the past 24 hours, with the price dropping to around $61.12, essentially erasing some of the gains made in the previous period. Foreign media reports indicate that this decline occurred within an overall weak market structure, and although there is still buying support, it has not yet been able to reverse the downward trend.
Trading activity surged significantly during the decline. Data shows that AAVE trading volume increased by 75.62% to $474.4 million, indicating that funds did not leave the market but instead concentrated on speculation during the rapid price drop. The article argues that this is more like a process of sellers accelerating their selling and buyers attempting to absorb the losses, rather than a decline in market attention.
Buying support continues
Judging from the spot market's active transaction spread, buyers still dominated at one point. This means that some traders viewed the decline as an opportunity to buy at lower prices, rather than withdrawing from the market altogether.
However, the continued decline in prices indicates that selling pressure remains stronger than new demand. In other words, although there is capital flowing in, it is not enough to regain short-term pricing power.
The $87.6 support level has been broken.
The weekly chart shows that AAVE has broken below the key support level of $87.60. For the past few months, the price has been trading within a descending channel, and it is currently significantly below the major resistance zone near $128.23, indicating that the overall bearish trend remains unchanged.
The article notes that the market continues its trend of lower highs and lower lows. With support broken, the next key level to watch is around $50. Meanwhile, the RSI has fallen to 27.50, below its signal line of 32.32, entering oversold territory.
This usually means that selling pressure is relatively concentrated. If buyers can hold prices in the current area, AAVE may experience a technical rebound first; if it continues to weaken, the $50 area will face a greater test.
High liquidity above $64 to $70
The liquidation heatmap shows a significant accumulation of leveraged liquidity above the current price. Specifically, there is a large concentration of liquidations in the $64-$66 range, and another concentrated area appears around $69-$70.
The article argues that if buying continues, prices could potentially replenish liquidity in these areas before deciding on their next direction. Conversely, if the rebound fails to sustain, bearish pressure will continue to weigh on prices, reducing the probability of AAVE reaching higher liquidation zones.
