Aave(AAVE) tumbled 12% over the past day as aggressive selling overwhelmed buyer demand, though technical indicators suggest a rebound remains possible. Key Points: AAVE dropped 12% in 24 hou
Aave(AAVE) tumbled 12% over the past day as aggressive selling overwhelmed buyer demand, though technical indicators suggest a rebound remains possible.
- AAVE dropped 12% in 24 hours despite continued buyer activity in spot markets.
- Trading volume surged more than 75%, showing elevated participation during the selloff.
- An oversold RSI reading and liquidity clusters above current prices could support a short-term recovery attempt.
AAVE suffered one of its steepest daily losses in recent weeks, falling to around $61.12 and erasing much of its recent recovery. The decline extended the token’s broader downtrend and pushed it further away from key resistance levels.
Trading activity accelerated during the selloff. Volume jumped 75.62% to roughly $474.4 million, signaling strong market participation rather than a lack of interest.
Data from CryptoQuant showed Spot Taker CVD remained buyer-dominant throughout the decline, indicating some traders viewed lower prices as a buying opportunity. Even so, demand failed to offset persistent sell-side pressure, allowing the correction to continue.
The divergence between buyer activity and falling prices suggested sellers retained control despite attempts to absorb available supply.
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The weekly chart showed AAVE breaking below the important $87.60 support zone after spending months inside a descending channel. The token also remained far below major resistance near $128.23, reinforcing the longer-term bearish structure.
Repeated lower highs and lower lows continued to define the trend. Following the breakdown, the next major support area sits near $50.
Momentum indicators reflected the weakness. RSI fell to 27.50, placing the token firmly in oversold territory and highlighting sustained selling pressure.
Meanwhile, liquidation data from CoinGlass pointed to significant liquidity clusters between $64 and $66, with another concentration around $69 to $70. These levels could attract price action if buyers manage to extend the ongoing recovery attempt.
The recent decline follows months of weakness for AAVE, which has repeatedly failed to reclaim higher resistance zones while remaining trapped in a broader bearish channel. Whether the current oversold conditions produce a relief rally or lead to another test of support near $50 may determine the token’s next major move.
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