AAVE Risks Break Below $100, Bears Target 2-Year Lows

Aave’s governance token AAVE is under renewed selling pressure and risks falling below the key $100 support level. After sliding from near $370 in August 2025, AAVE is down roughly 15% over the past week and about 25% year-to-date, retreating some 67% since August 2025 and over 80% from its 2021 peak above $667. The token recently tested support at $108 following a double-top formation and a prior drop toward $95. Decreasing total value locked on the Aave protocol and weak trading volumes have reduced liquidity and protocol revenues, increasing downside vulnerability. Technicals show bearish momentum: moving averages signal selling pressure while oscillators sit near neutral (daily RSI ~34) with limited immediate bullish conviction. A decisive breakdown under the $112–$100 support zone could accelerate selling toward a $75–$80 demand area tied to a key Fibonacci retracement and price levels last seen in early 2024. Upside requires a sustained weekly close above $140, with $120 as near-term support and $144 as next resistance, and would need rising volumes to validate. Implications for traders: monitor $112–$100 support closely for breakdown risk, watch liquidity/TVL metrics for trend confirmation, consider the $75–$80 range as a potential buy-the-dip zone, and use tight risk management given heightened volatility.