The Aave token is trading dangerously close to the $85 support level, with bearish momentum building across all timeframes. A breakdown below this threshold appears increasingly likely within the next two weeks, potentially driving the price into the $75-80 zone.
Price pressure builds
AAVE has been sliding steadily as selling pressure intensifies. The $85 line has held for weeks, but traders say it's looking shaky. Technical indicators point to further downside, with no clear catalyst to reverse the trend. The token's recent price action mirrors a broader loss of confidence in the decentralized finance sector.
Volume is rising on the sell side, and open interest in futures contracts has dropped sharply. Short positions are piling up, reflecting a market that expects more pain ahead. If $85 gives way, the next floor sits around $75-80 — a zone that hasn't been tested since late 2023.
DeFi sector drag
The entire DeFi space is in the middle of an accelerating selloff. AAVE isn't alone: major tokens like Uniswap, Compound, and Maker have all shed double-digit percentages this month. Total value locked across DeFi protocols has fallen to multimonth lows, compounding the bearish mood.
Investors are rotating out of riskier crypto assets as macroeconomic uncertainty grows. Higher interest rates and regulatory crackdowns in key markets have drained liquidity from the sector. AAVE, once a blue-chip DeFi play, is now caught in the downdraft.
Technical outlook
On the daily chart, AAVE has formed a series of lower highs and lower lows since early October. The relative strength index sits below 40, indicating bearish momentum without being oversold. A move through $85 would likely trigger stop-loss orders, accelerating the drop toward $75.
$80 is a psychological level that could attract bargain hunters, but history shows that when DeFi tokens break key supports, they tend to fall fast. The next two weeks will reveal whether buyers step in or the breakdown plays out as bears expect.
For now, the question is simple: can $85 hold, or will AAVE slide into the $75-80 range? Traders aren't betting on a quick recovery.
