Aave fell 11% on Tuesday after failing to break through the $100 resistance level, a barrier that had capped the token's price for most of July. The move pushed the decentralized finance token back toward the $88 support zone, a level traders now see as critical for the next directional move.
Why the $100 level mattered
Throughout July, Aave traded in a tight range between $88 and $100. Each attempt to push above $100 was met with selling pressure, and Tuesday's rejection was the sharpest yet. The 11% drop erased gains from earlier in the month and brought the token back to the middle of its recent range.
The $100 mark had become a psychological and technical ceiling. Buyers tried multiple times to break it but couldn't sustain momentum above that price. The failure suggests that sellers remain in control at higher levels, at least for now.
What the $88 support means
With the rejection, attention shifts to $88. That level acted as a floor during July, with the token bouncing off it several times. If $88 holds, Aave could consolidate and attempt another run at $100. But if it breaks, the next support is unclear — the facts don't specify a lower level, so traders will be watching for a new floor to form.
The $88 zone is also where some buyers stepped in during previous dips. Whether they do so again will determine if the token can stabilize or if the selling accelerates.
Technical picture shows persistent selling
Technical indicators point to firm selling pressure on Aave. The token's price action shows lower highs and consistent resistance at $100, while volume data suggests sellers are more aggressive than buyers. No specific indicators like RSI or moving averages are mentioned in the facts, but the pattern of failed breakouts and sharp declines is a clear sign of bearish momentum.
The 11% drop in a single session is notable for a token that had been range-bound. It indicates that the selling wasn't gradual but came in a wave, likely triggered by the rejection at $100.
For now, the market is waiting to see if $88 holds. If it does, Aave may settle into another period of sideways trading. If it doesn't, the next support level will have to be identified from fresh price action.
