AAVE, the native token of the Aave lending protocol, has slipped below the $96 support level, opening the door to what market data points to as a deeper correction. The cryptocurrency now appears headed for the $85 to $88 range, as neutral momentum indicators mask an underlying distribution pattern that suggests further downside.
Why $96 mattered
The $96 mark had served as a key floor in recent weeks, with buyers stepping in near that price multiple times. That support broke in Monday's trading session, and the move triggered a shift in the technical setup. Without a quick recovery above that level, traders are watching for the next zone of interest — the $85-88 area.
What the breakdown reveals
Price action alone doesn't tell the full story. While momentum oscillators like the RSI show neutral readings — neither oversold nor overbought — volume and order flow tell a different tale. The distribution pattern underneath suggests that larger holders have been quietly reducing positions, even as the token traded sideways. That divergence often precedes a sharper move lower.
The $85-88 target zone
The projected range of $85 to $88 represents a roughly 10% decline from the broken $96 level. It's not a random guess — that zone aligns with prior consolidation areas and could act as the next support if buying interest returns. But a breakdown below $85 would open up even lower targets, though no specific floor has been cited beyond that.
For now, the question hanging over the market is whether the $85-88 level will hold or if the distribution pattern has further to run. Traders will be watching the next few sessions for any signs of accumulation that could reverse the slide.
