The governance token of the prominent decentralized lending protocol Aave (AAVE) has faced substantial selling pressure through the past 24 hours, dipping briefly below the $270 level.

The DeFi bluechip plunged 5% in the early Thursday session, sliding nearly 10% lower since this week's high. It has modestly recovered later in the day U.S. hours, changing hands at around $272.

The price action occurred amid a weak session for cryptocurrencies with bitcoin on the verge of breaking below $120,000. The broad market CoinDesk 20 Index was down more than 4% during the day.

The technical picture shows bearish momentum for the DeFi major, CoinDesk Research's analysis model suggested.

Losing key support at $273 triggered a cascade of selling, accelerating the decline. Subsequent recovery attempts proved unsuccessful, with the failed rallies confirming sustained selling pressure, the model suggested.

Key Technical Indicators

• Trading volume spiked to 63,651 units, substantially exceeding 24-hour average of 31,013 units.
• Technical resistance established at $280.00 level.
• Breakdown below critical support at $273.00 triggered additional algorithmic liquidation.
• Multiple recovery attempts failed, indicating sustained selling pressure.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.

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