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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Wall Street giants collectively raise rate hike forecasts, US Treasury futures continue to fall, gold drops over 1% to break 4000
After the US October CPI exceeded expectations, Goldman Sachs and Nomura added a forecast for an interest rate hike in March next year, while Deutsche Bank included a forecast for a rate hike in January next year. Currently, the market has fully priced in a 25 basis point rate hike in December, with a 13% probability for a 50 basis point hike. On Wednesday, the US Treasury spot market was closed, but Treasury futures continued to fall, with corresponding yields rising by about 2 to 4 basis points, and spot gold came under pressure, dropping by 1.1%.
No Need to Worry About the Cooling Down of AI Data Center Construction? The US Import Boom Is Unlikely to Subside in the Short Term, Real Impact May Come in 2029
It takes an average of 4.8 years from finalizing investment to starting construction of a data center project, and an additional 2.6 years from construction start to becoming operational. Servers usually cannot be installed until after the building structure and racks are completed. For trade partners such as Taiwan (China), South Korea, and Mexico who rely on US data center supply chain demand, the inertia in construction timelines provides at least a one- to two-year buffer for future exports.
Federal Reserve Major Debate: When Should the Tenure of “Number Three” Williams End?
The main point of contention is whether Williams should step down in June 2028, upon completing a full 10-year term, or in June 2027, when he reaches the mandatory retirement age of 65. Analysts point out that the Federal Reserve Board holds ultimate discretion; if he leaves early, Fed Chair Waller would be able to assert greater control over the appointment to this critical position. However, forcing Williams to shorten his term could easily be interpreted as political manipulation. Williams himself is expected to serve until June 2028.
Crypto prices
More
