AAVE price falls below $100 as DeFi selling pressure intensifies

AAVE posted one of its sharpest single-session drops in months on April 6, briefly falling through $84 before partially recovering. The move pushed the $100 psychological level from support to resistance, while technical indicators on both the daily and four-hour charts remain bearish.

April 6 price action: drop, rebound, and $100 flip

AAVE fell to an intraday low of $83.92 on April 6 and then recovered to $94.66. The selloff represented a decline of more than 11% from the prior session’s close of $94.15. The recovery still left the token well below $100, confirming the level’s new role as resistance on the daily chart.

Technical picture: daily and 4H indicators stay bearish

On the daily timeframe, the Supertrend indicator is at $107.82, above current price and acting as a cap on near-term rebounds. The daily MACD histogram remains negative, and the signal line is still below zero, indicating selling momentum has not reversed.

On the four-hour chart, the Supertrend is at $92.29 and is currently acting as near-term floor. The 4H MACD histogram is near flat, suggesting a pause in downside momentum rather than a confirmed reversal.

Key levels to watch: $92, $83.92, and the $80 zone

The immediate support to monitor is $92.29 on the 4H chart. A daily close below that level would reopen the $83.92 intraday low as the next test. Below there, the $80 round number marks the next significant support area, reinforced by the 0.786 Fibonacci retracement of AAVE’s 2024 to 2025 rally, which falls in the $80 to $85 zone.

On the upside, $100 remains the primary resistance. A confirmed daily close above the Supertrend at $107.82 would be the minimum requirement to shift the short-term bias toward neutral. A sustained recovery above $100 with volume confirmation would open the path toward $112, based on an ascending structure visible on the 4H chart.

Development and market context

BGD Labs, described as a core technical contributor to the Aave protocol, formally concluded its engagement on April 1, citing governance tensions. The article notes that Aave founder Stani Kulechov previously said the protocol’s risk infrastructure “has historically processed over 1,200 payloads and 3,000 parameters without issues,” but BGD Labs’ exit adds uncertainty around development continuity heading into the V4 launch cycle.

Grayscale Investments has filed to convert its Aave Trust into an ETF on NYSE Arca, which is presented as a potential longer-term demand catalyst; however, the article states approval timelines do not provide near-term price support.

According to CoinGlass data cited in the article, AAVE futures open interest has declined alongside price in recent sessions. The decline is described as consistent with long-side deleveraging rather than aggressive new short positioning, which the article says reduces the probability of a sharp short-covering bounce.

Downside scenario if $92.29 fails

If $92.29 gives way on the 4H chart, the article says a revisit of the $83.92 intraday low looks probable. In that case, $80 is identified as the last significant structural support before territory AAVE has not traded in years.