Aave (AAVE) Plummets 13% Weekly 6% in 24 Hours $270 Support Looms as Key Bounce Zone

Aave (AAVE) has experienced a 13% decline over the past week, trading near $284 as of the latest data, with 24-hour losses approaching 6%. The token’s price action has drawn attention to a critical support zone at $270, identified by analyst Ali Martinez as a potential "reload area" for buyers [1]. This level aligns with the 0.618 Fibonacci retracement at $247.56 and a historical resistance cluster, suggesting a key psychological and technical threshold for near-term stabilization. Martinez notes that holding above $270 could establish a short-term base for buyers, while a breakdown might target the $247.56 level. A recent tweet from Martinez visualized this scenario, highlighting a possible rally to $560 if the $270 zone holds [1].

Technical indicators further underscore the token’s weakening momentum. The Relative Strength Index (RSI) has dropped to 44.12, a significant pullback from its prior average of 60.52, signaling oversold conditions. AAVE’s position below the midline of its Bollinger Bands—currently at $305—further reinforces bearish sentiment. The lower band, now around $273, provides additional context for the $270 support level, as it could act as a buffer if selling pressure persists [2]. Traders are closely monitoring whether AAVE can hold above this threshold to avoid further downside.

The broader DeFi ecosystem offers a counterbalance to short-term volatility. Aave has contributed $15 billion in total value locked (TVL) since April, accounting for nearly one-third of the $49 billion growth in DeFi protocols during this period. This dominance underscores its role as a cornerstone project in the decentralized finance space. Additionally, Aave’s upcoming expansion to Kraken’s Ink blockchain—a governance proposal receiving 99% approval—signals institutional confidence in its scalability and utility [3]. Analyst Sjuul from AltCryptoGems emphasized the strategic importance of the current price level, stating, "AAVE is at an interesting spot… a bounce here and the bullish structure is safe," though noting that near-term action will validate this outlook [3].

Market participants are balancing immediate concerns with long-term fundamentals. While the 13% weekly drop reflects broader market corrections and profit-taking, Aave’s foundational metrics—$790 million in 24-hour trading volume and its leadership in TVL—highlight resilience. The convergence of Fibonacci levels, volume profiles, and historical price reactions at $270 presents a focal point for both bears and bulls. Should buyers re-enter the fray, a rebound toward $400 and eventually $560 remains plausible, though contingent on maintaining critical support levels.

Sources:

[1] [title1AAVE Down 13% Weekly: Here’s the Key Bounce Zone] [url1https://coinmarketcap.com/community/articles/688238d64cfeba01fc2c2df2/]

[2] [title2AAVE Down 13% Weekly: Here’s the Key Bounce Zone] [url2https://coinmarketcap.com/community/articles/688238d64cfeba01fc2c2df2/]

[3] [title3AAVE Down 13% Weekly: Here’s the Key Bounce Zone] [url3https://coinmarketcap.com/community/articles/688238d64cfeba01fc2c2df2/]