Aave’s governance token (AAVE) faced heavy selling Thursday, briefly slipping below $270 as broader cryptocurrency markets weakened.
The DeFi token fell 5% in early U.S. trading, marking a nearly 10% decline from this week’s high, before recovering slightly to trade around $272. Bitcoin hovered near $120,000, and the CoinDesk 20 Index fell more than 4%.
Technical Snapshot
CoinDesk Research highlighted bearish momentum for AAVE. Breaking the $273 support level triggered accelerated selling, while subsequent recovery attempts failed to hold.
Key technical points:
- Trading volume surged to 63,651 units, over double the 24-hour average of 31,013.
- Resistance appeared at $280, limiting upside.
- Algorithmic liquidations triggered after the support breach amplified selling pressure.
