Aave Breaks Below $100 — Is a Deeper Crash Ahead?

TL;DR:

• The price of AAVE dropped more than 10% in the last day, losing the psychological and technical support of $100 in the face of a bearish breakout.
• Token reserves on exchanges grew from 2.07 to 2.23 million, signaling a massive distribution led by liquidity on Binance.
• The departure of Chaos Labs and changes in governance have weakened market sentiment, projecting potential drops toward the $55 range.

High alert in the DeFi ecosystem after it was confirmed that Aave fell below $100, recording a correction of over 10% in the last 24 hours. This structural break responds to a combination of technical and fundamental factors that eroded investor confidence.

The supply of AAVE on exchanges exceeded its 90-day average, reaching 2.23 million units. This flow toward exchange platforms usually precedes a price capitulation, while the RSI shows a clear loss of buying momentum.

On the other hand, Chaos Labs’ exit from the protocol generated doubts about the continuity of governance. This event, added to the departure of other key collaborators, created an environment of uncertainty that bears have quickly exploited.

The path toward $55 and liquidation levels

Currently, the AAVE chart plots a series of lower highs and lower lows, confirming a bearish continuation framework. The zone that previously functioned as support now acts as an insurmountable resistance for buyers in the short term.

If this weakness persists, the next price target is situated at $85. However, analysts warn that if this level fails, there is a much deeper “liquidity pocket” located between $55 and $70 per token.

Aave’s market structure is predominantly bearish due to the increase in supply and institutional noise. Only a sustained close above $100 would invalidate the scenario of a more severe crash in the coming weeks.