AAVE Price Drops Below Critical Support as Crypto Market Declines - Technical Analysis

The native token of leading decentralized lending platform Aave (AAVE) experienced significant selling pressure over the past 24 hours, briefly falling below the $270 mark. The DeFi blue-chip asset declined 5% during Thursday's early trading session, representing nearly a 10% drop from this week's peak. Some recovery occurred later in US trading hours, with the token trading around $272. This price movement coincided with broader cryptocurrency market weakness, as Bitcoin approached the $120,000 threshold. The CoinDesk 20 Index, representing the overall market, declined over 4% during the session. Technical analysis from CoinDesk Research indicates bearish momentum for the major DeFi token. The breach of crucial support at $273 triggered automated selling, accelerating the downward trend. Multiple recovery attempts proved unsuccessful, confirming persistent selling pressure according to the research model. Key Technical Indicators: - Trading volume surged to 63,651 tokens, significantly above the 24-hour average of 31,013 - Technical resistance established at $280.00 level - Breakdown below critical $273.00 support triggered algorithmic liquidations - Failed recovery attempts indicate continued selling pressure Disclaimer: This analysis incorporates AI-assisted tools reviewed by our editorial team for accuracy and compliance with our standards.