The governance token of prominent decentralized lending protocol Aave has faced substantial selling pressure over the past 24 hours, briefly falling below the $270 level.
The bluechip DeFi plunged 5% in the first session on Thursday, falling almost 10% from this week’s high. It recovered modestly later in US time, trading at around $272.
The price action came amid a weak session for cryptocurrencies with bitcoin poised to fall below $120,000. The broad market CoinDesk 20 index was down more than 4% on the day.
The technical picture shows bearish momentum for the DeFi major, CoinDesk Research’s analysis model suggested.
The loss of key support at $273 triggered a cascade of selling, accelerating the decline. Subsequent recovery attempts proved unsuccessful and failed rallies confirmed sustained selling pressure, the model suggested.
Key technical indicators
- Trading volume soared to 63,651 units, substantially surpassing the 24-hour average of 31,013 units.
- Technical resistance was established at the $280.00 level.
- The drop below the critical support at $273.00 triggered additional algorithmic liquidation.
- Multiple recovery attempts failed, indicating sustained selling pressure.
Disclaimer: Portions of this article were generated with the help of artificial intelligence tools and were reviewed by our editorial team to ensure accuracy and compliance. our standards. For more information, see CoinDesk’s full AI policy.
