Connect with us
DAPA Banner

Crypto World

Will AAVE price recover above $100 as DeFi selling rises

Published

on

Will AAVE price recover above $100 as DeFi selling intensifies? - 1

AAVE price posted one of its sharpest single-session drops in months on April 6, briefly crashing through $84 before a partial recovery took hold. The chart damage is clear: $100 has gone from support to resistance in a single session, and the technical setup across both the daily and four-hour timeframes remains decisively bearish.

Summary

  • AAVE price fell to an intraday low of $83.92 on April 6 before recovering to $94.66, confirming the $100 psychological support as resistance on the daily chart.
  • The daily Supertrend at $107.82 and a deeply negative MACD reinforce the bearish bias, while the 4H Supertrend at $92.29 is currently acting as near-term floor.
  • A failure to reclaim $100 keeps the $83 intraday low and the $80 Fibonacci zone in sight, while a daily close above $107.82 would be the first signal of a structural shift.

AAVE (Aave) price crashed to $83.92 on April 6, sliding more than 11% from the prior session’s close of $94.15 before recovering to $94.66, as DeFi sector selling and broader macro risk-off sentiment pressured the Aave lending protocol’s native token. The drop confirmed a decisive break below the $100 psychological support, a level the daily chart now labels as resistance following months of acting as a structural floor.

On the daily chart, the Supertrend indicator sits at $107.82, well above price and capping any near-term recovery attempt. The MACD histogram remains negative across the daily timeframe, with the signal line still below zero, confirming that selling momentum has not yet reversed. Today’s candle printed a long lower wick from $83.92, reflecting demand at intraday lows, but the $94.66 close falls well short of what is needed to challenge the $100 threshold.

Advertisement

BGD Labs, a core technical contributor to the Aave protocol, formally concluded its engagement on April 1 after citing governance tensions. Aave founder Stani Kulechov had previously noted on X that the protocol’s risk infrastructure “has historically processed over 1,200 payloads and 3,000 parameters without issues,” but BGD Labs’ exit has introduced fresh uncertainty around development continuity heading into the V4 launch cycle.

On the 4H chart, the Supertrend at $92.29 is acting as dynamic support. The 4H MACD histogram is near flat, reflecting a pause in downside momentum rather than a confirmed reversal.

Key Levels: $80 Zone in View if $92 Fails

The 4H Supertrend at $92.29 is the immediate support to monitor. A daily close below that level reopens the $83.92 intraday low as the next test. Below that, the $80 round number marks the next significant support, reinforced by the 0.786 Fibonacci retracement of AAVE’s 2024 to 2025 rally, which falls in the $80 to $85 zone. That is the bear case invalidation level for any medium-term recovery thesis.

Advertisement
Will AAVE price recover above $100 as DeFi selling intensifies? - 1

On the upside, $100 is the primary resistance. A confirmed daily close above the Supertrend at $107.82 is the minimum required to shift the short-term bias toward neutral. A sustained recovery above $100 with volume confirmation opens the path toward $112, as indicated by the potential ascending structure visible on the 4H chart.

On-Chain Context and Institutional Signals

Grayscale Investments has filed to convert its Aave Trust into an ETF on NYSE Arca, a potential longer-term demand catalyst, though approval timelines provide no near-term price support. According to CoinGlass data, AAVE futures open interest has declined alongside price in recent sessions, consistent with long-side deleveraging rather than aggressive fresh short building, which reduces the probability of a sharp short-covering bounce.

If $92.29 gives way on the 4H chart, a revisit of the $83.92 intraday low looks probable, with $80 as the last significant structural support before territory AAVE has not traded in years.

Source link

Advertisement
Continue Reading
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Crypto World

Chaos Labs Leaves Aave Due to Budget, Risk Disagreements

Published

on

Chaos Labs Leaves Aave Due to Budget, Risk Disagreements

Chaos Labs has parted ways with the Aave ecosystem after serving as the crypto lending protocol’s main risk service provider for three years, citing a budget dispute and disagreements over how Aave should manage risk.

“This decision was not made in haste,” Chaos Labs founder Omer Goldberg said in a post to X on Monday. “We worked in good faith with DAO contributors. Aave Labs was professional and supported increasing our budget to $5m to retain us. However, we are leaving because the engagement no longer reflects how we believe risk should be managed.”

Source: Omer Goldberg

Aave Labs CEO Stani Kulechov said that Chaos didn’t depart on bad terms, but claimed that Chaos pitched a proposal seeking to become the sole risk provider and thus force out other partners — a compromise Aave wasn’t willing to accept.

Chaos played a key role in Aave’s back-end infrastructure, from pricing loans and managing risk in the Aave V2 and V3 markets since November 2022, during which Aave’s total value locked rose fivefold to $26 billion.

Risk has been a major talking point in the Aave community after a user lost $50 million in a trade while interacting with Aave’s interface on March 12. The following week, Aave said it would introduce an “Aave Shield” protection feature to deter users from high-risk trades.

Advertisement

As for Chaos’ departure, Goldberg said there became an increasing misalignment over how the parties thought risk should be managed. He noted that some Aave contributors had left, raising its workload, while also arguing that Aave V4’s expanded functionality introduced additional operational and legal risks that fell on Chaos’ shoulders.

“While Aave Labs is optimistic about a swift migration to V4, history suggests these transitions take months and even years,” Goldberg said. “Until V4 fully absorbs V3’s markets and liquidity, both systems need to be operated and managed simultaneously. The workload during the transition doesn’t halve. It doubles.”

Weighing the risk of a protocol failure, Goldberg said, “There is no regulatory framework, no safe harbor, and no settled law that answers the question of what a risk manager or curator owes when a protocol fails. If things work, the work is invisible. If things break, the blame is not.”

As such, “We are walking away from a $5 million engagement,” Goldberg said.

Advertisement

Chaos wanted Aave to boot LlamaRisk, Chainlink: Kulechov

Aave Labs CEO Stani Kulechov told a slightly different story, stating that Chaos wanted to be the sole risk manager and use its price oracles instead of Chainlink’s.

Following that request would have forced Aave to push out its other risk protocol partner, LlamaRisk, and thus abandon its two-layer economic risk model.

Related: DeFi lender Aave launches on OKX’s Ethereum L2, X Layer

Kulechov added Aave was unwilling to integrate Chaos-built price oracles, citing Aave’s “track record” with Chainlink’s services, which its “users are currently more comfortable with at scale.”

Advertisement

He also said Chaos was already “exploring winding down its risk consultancy services,” and that Aave had offered to double its payment to $5 million to retain them.

Cointelegraph reached out to Chaos Labs for comment.

Kulechov noted that Chaos’ departure hasn’t disrupted the Aave protocol, its smart contracts, token listings or network integrations.

Moving forward, Aave said it “will work closely with LlamaRisk to ensure a smooth transition” and maintain its two-layer economic risk model. 

Advertisement
Source: LlamaRisk

Chaos’ departure comes amid a protocol-wide feud over how much funding and revenue control Aave Labs should receive versus Aave’s decentralized autonomous organization.

Despite the internal issues, Aave crossed the $1 trillion mark in cumulative lending volume in late February, marking a first in the DeFi industry.

Magazine: Animoca teams up with Ava Labs, Shrapnel on Steam: Web3 Gamer