Amidst market pressures, Aave’s price is at a critical juncture, potentially facing a significant drop below $100 and into new multi-year lows.
The broader crypto market downturn has led AAVE to trade around $108, highlighting the increasing downside risks and the potential breach of the key $100 support level.
This scenario mirrors the overall volatility in the decentralized finance sector, with a noticeable decrease in total value locked, indicating a susceptibility to further price declines.
Retesting $108 Support Level
Aave’s AAVE token, once trading near $370 in August 2025, has since experienced a substantial decline amidst prevailing bearish sentiment across the crypto space.
The gradual descent throughout late 2025 intensified towards the $100 threshold, culminating in a double-top pattern formation and a subsequent drop to around $95 in recent weeks.
Despite a brief rebound to approximately $120, persistent selling pressure has led to prices revisiting the $108 support level.
Over the past week, the token has declined by approximately 15% and around 25% year-to-date, reflecting a significant drop of about 67% since August 2025 and over 80% from its all-time high above $667 in 2021.
This price weakness correlates with a sharp decline in Aave’s total value locked, indicating reduced liquidity and weaker protocol revenues.
Bears Eye 2-Year Lows
Although bullish sentiment remains, recent market turbulence has favored bears, with technical indicators signaling a growing bearish momentum for Aave.
While momentum oscillators suggest a potential short-term bullish shift, moving averages continue to indicate strong selling pressure, particularly if the token fails to sustain above the $112 support zone, potentially leading to a slide towards the crucial $100 level.
A breakdown similar to the pattern observed in AAVE’s price action since late 2025 could intensify seller dominance and heighten short-term downside risks.
The current downturn could potentially push the price towards the $75-$80 demand zone, aligning with a key Fibonacci retracement level, reminiscent of early 2024 levels.
To regain momentum, a sustained weekly close above $140 would be essential, supported by increased trading volumes and initial resistance at $120, followed by $144 before aiming for higher targets.
Despite the daily Relative Strength Index hovering around 34 in neutral territory, sellers have room to maintain pressure, potentially leading to a short-term false breakout before a definitive directional move materializes.
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