Aave (AAVE) Price Drops Below $260
Aave (AAVE) is trading below $260 on Tuesday. The token faces resistance near this level. On-chain data shows a weak outlook. Total Value Locked (TVL) and lending capacity are falling. This suggests less activity on the Aave network. Technical signals hint at a possible price drop soon.
On-Chain Data Shows Lower Network Activity
Data from Arthemis Terminal shows Aave’s TVL dropped from $39.9 billion on October 7 to $33.2 billion on Monday. This is the lowest level since mid-August. A falling TVL means fewer users are depositing or using assets in Aave’s ecosystem.
Lending capacity also fell from $65.6 billion on October 7 to $55.5 billion on Monday. This is the lowest since mid-August. Lower lending capacity means less liquidity for borrowers. It signals reduced participation or lower confidence in Aave.
Aave Price Outlook: Bears Hold Control
Aave’s price broke below an upward trendline last Friday. It dropped over 18% to a low of $79.51 that day. The price then recovered 16% over the next three days. On Tuesday, AAVE trades lower again near the broken trendline.
This trendline matches the 61.8% Fibonacci retracement level at $268.91. This makes it a key resistance area. If AAVE keeps falling, it could drop to weekly support at $203.50.
The Relative Strength Index (RSI) is 42, below the neutral 50 level. This shows bears control momentum. The Moving Average Convergence Divergence (MACD) also had a bearish crossover on Friday. This supports a bearish view.
If AAVE breaks above $268.91, it may rise toward the 100-day Exponential Moving Average (EMA) at $283.01.
