Aave (AAVE) Faces Selling Pressure as Price Dips Below $270 Amid Market Weakness

The governance token of leading decentralized lending protocol Aave (AAVE) has come under heavy selling pressure, briefly slipping below the $270 mark in the past 24 hours. The DeFi bluechip fell by 5% during early Thursday trading, marking a nearly 10% decline from its weekly high. Despite a modest recovery during U.S. trading hours, AAVE continues to hover around $272, signaling cautious market sentiment.

The downturn comes during a broad cryptocurrency market pullback, with Bitcoin nearing a drop below $120,000 and the CoinDesk 20 Index sliding over 4% in a single day. This market-wide weakness appears to have amplified Aave’s decline, triggering additional sell-offs across decentralized finance (DeFi) tokens.

Technical indicators suggest continued bearish momentum for AAVE. According to CoinDesk Research’s analysis, a breakdown below the key $273 support level accelerated the selloff, leading to algorithmic liquidations. Despite multiple rebound attempts, the token struggled to sustain any upward movement, confirming persistent selling pressure in the market.

Trading volume surged to 63,651 units, more than double the 24-hour average of 31,013 units, indicating heightened market activity during the downturn. Analysts now identify technical resistance at $280, suggesting that AAVE may face challenges reclaiming this level in the short term.

As investors continue to navigate a volatile DeFi environment, Aave’s price behavior underscores the broader fragility of the crypto market amid shifting sentiment. Maintaining support above $270 will be critical for AAVE to stabilize and prevent further downside momentum, especially as traders await signs of renewed buying strength.