Session Summary
Aave’s AAVE governance token slipped below $270 on October 9 after a 5% intraday decline. The drop extends a broader sell-off, with AAVE now down nearly 10% from this week’s high. The move was accompanied by elevated trading volume and technical breakdowns.
Technical Indicators
- Trading volume spiked to 63,651 units, double the 31,013-unit 24-hour average.
- Key resistance formed at $280, with subsequent failed rallies.
- Break of $273 triggered algorithmic liquidations, reinforcing bearish momentum.
CoinDesk Research’s model suggests sustained selling pressure, though oversold conditions could invite short-term relief bounces. AAVE recovered modestly to $272 later in U.S. hours.
Market Environment
The decline in AAVE correlated with weakness in major cryptocurrencies, as Bitcoin hovered near $121,000 and the CoinDesk 20 Index fell over 4%. Market participants cited macro uncertainty and a lack of fresh catalysts amid a U.S. government shutdown.
Outlook
Analysts recommend monitoring $270 for support and the $273–$275 zone for potential resistance. A sustained move below $270 could signal further downside, while a reclaim of $280 might mark a stabilization point ahead of potential macro and on-chain drivers.
Reporting Journal: CoinDesk | Analysis: CoinDesk Research.
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