AAVE Falls 6% as Selling Pressure Breaks $140 Support
AAVE fell about 6% on October 24, dropping below $140 as selling pressure weighed on the DeFi token. It was quoted at $140.12 at 11:46 UTC, down 5.29% over 24 hours, and later readings showed prices nearing $135. AAVE is now well below its 20-day moving average near $159.53. No confirmed exploit, emergency governance action or token-specific announcement has been identified as the direct cause; broader crypto-market weakness and pressure on leveraged positions may be contributing factors.
The decline came despite Aave ecosystem developments. Aave V4 added independently curated lending markets for RLUSD, PYUSD and OUSD, while a separate proposal could let users borrow stablecoins against native Bitcoin collateral. These initiatives do not necessarily create demand for AAVE. The protocol’s revenue-funded token buybacks, introduced in 2025, were paused after an rsETH-related disruption in April.
Traders are watching $130 as a potential support area. AAVE would need to reclaim $140 and then the $149–$150 region to improve short-term momentum; a sustained move above that range could put $155–$160 in focus. Continued selling could bring $120 into view. These levels are technical reference points, not guaranteed forecasts.
Bearish
The immediate market signal is bearish: AAVE has fallen roughly 6%, broken below $140 and is trading well beneath its 20-day moving average near $159.53. Traders may interpret the loss of short-term support as confirmation of downward momentum, increasing the risk of tests near $130 and, if selling persists, $120. Reclaiming $140 and then the $149–$150 resistance area would be an early sign that pressure is easing.
The article identifies no confirmed Aave-specific trigger for the decline. Broader crypto weakness and leveraged-position pressure are cited as possible contributors, so the move should not be treated as proof of a protocol failure. Still, previous volatility linked to lending risks—including the rsETH-related disruption that preceded a pause in Aave’s buybacks—shows how operational concerns can weigh on confidence in both the platform and its token.
Aave V4’s new lending markets and the proposed Bitcoin-collateral borrowing feature may support ecosystem activity over time, but protocol expansion does not automatically translate into buying demand for AAVE. In the short term, price action, broader market conditions and the $130 support area are likely to matter most. Over the longer term, sustained usage, revenue and any resumption of token buybacks could improve sentiment, while continued market weakness or renewed lending concerns could prolong pressure. Overall, the near-term balance of risks is bearish, though the article does not establish a lasting change in Aave’s fundamentals.