High-volume selling drives DeFi token beneath critical thresholds as market sentiment turns cautious
AAVE (AAVE/USDT) has slipped below the $280 support zone, signaling mounting pressure across the DeFi sector as traders reassess risk amid a cooling broader crypto market. The asset’s decline comes after multiple failed attempts to sustain momentum above the $300 level, with sellers now testing the strength of the next support confluence around $260–$270.
On the daily chart, AAVE has broken beneath a horizontal support range that had served as a strong accumulation base since mid-September. The structure now forms a rising trendline connecting higher lows since July — a key level that could determine whether bulls can defend the medium-term uptrend. A break below this line could expose the $240–$250 zone, last seen in August, where buyers previously stepped in aggressively.
“AAVE is showing a clear loss of short-term momentum. The failure to hold the $280 area indicates that the market is rotating out of DeFi majors for now,” said BITX market analyst. “However, the ascending base from July remains intact — as long as it holds, recovery potential toward $320 remains possible.”
Trading volume has risen significantly during the latest pullback, suggesting capitulation-style selling rather than slow distribution. Still, analysts point to macro conditions — including a recent pullback in Bitcoin below $122,000 and Ethereum hovering near $3,200 — as key factors weighing on sentiment.
“Altcoins are closely following Bitcoin’s consolidation range. Until BTC regains strength, capital will likely remain defensive,” .
AAVE’s technical landscape shows a battle between short-term weakness and medium-term structural support. The $260–$270 area will be decisive for trend continuation. Holding above it could invite renewed buying pressure, while a deeper drop may open a path toward the $220 region before any potential rebound.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.