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
U.S. chip stocks drop for eight consecutive sessions! $2 trillion wiped out in market value, marking the longest losing streak since 2008
This week, the investment prospects of AI were questioned by the market. The Philadelphia Semiconductor Index fell by 11.4%, and the Nasdaq dropped more than 4% in a single week. CoreWeave's stock price fell over 25% during the week, and its bonds dropped to distressed levels, casting doubt on the high-yield debt financing model. Strategists warned that being overly bearish could lead to missing opportunities, while "Wood Sister" bucked the trend and increased her holdings of CoreWeave.
In August, overseas funds returned to the U.S. Treasury market; UK holdings surpassed $1 trillion for the first time; Japan and China continued to reduce holdings, with China’s U.S. Treasury holdings hitting the lowest level since 2008
According to a report by the U.S. Treasury Department, overseas investors made net purchases of $108.9 billion in U.S. Treasury bonds in August, reversing a two-month decline in holdings. Among the top ten countries and regions holding U.S. debt, only China and Japan reduced their holdings in August. Japan, the largest holder, saw its holdings drop for the fourth consecutive month, reaching a 22-month low in the same month it intervened in the foreign exchange market. China’s holdings declined for the third straight month, hitting new lows for two consecutive months not seen since 2008. The UK, the second-largest holder, posted historic highs for two consecutive months. Canada recorded the largest increase in August, up $38.3 billion, ranking fifth overall. Belgium had the second-largest increase, up $19.8 billion.
Strategy surpasses JPMorgan in trading volume as MSTR neared 49M shares in August
Crypto prices
More
