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High alert in the DeFi ecosystem followed confirmation that Aave fell below $100, recording a correction of more than 10% over the last 24 hours. The move reflects a combination of technical and fundamental factors that weakened investor confidence and triggered a bearish breakout.
The supply of AAVE on exchanges rose above its 90-day average, reaching 2.23 million units (up from 2.07 million). This increase in token reserves on trading platforms typically signals heightened distribution activity, often preceding further downside pressure.
At the same time, the RSI indicated a loss of buying momentum, aligning with the broader shift in market sentiment.
Chaos Labs’ exit from the protocol contributed to doubts about governance continuity. The departure of other key collaborators compounded the uncertainty, which bears quickly leveraged to push prices lower.
Aave’s chart shows a sequence of lower highs and lower lows, confirming a bearish continuation structure. The $100 area that previously acted as support has turned into resistance for buyers in the short term.
If the weakness persists, the next price target is cited at $85. Analysts also warn that if $85 fails, a deeper “liquidity pocket” could emerge between $55 and $70 per token, where liquidation levels may concentrate.
The market structure is described as predominantly bearish due to rising exchange supply and governance-related noise. A sustained close above $100 would be required to invalidate the scenario of a more severe decline in the coming weeks.

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