$AAVE drops to $163 as the leading lending protocol retreats with DeFi sector weakness.
What's Happening:
Price Action: Aave falls 6.0% to $163.06, testing key support levels.
Protocol Revenue: Lending/borrowing activity actually increases during volatility — fees up.
TVL Stable: Aave TVL holding relatively steady as users maintain positions.
V4 Development: Aave V4 unified liquidity layer in development — major 2026 catalyst.
Why It Matters:
Aave is DeFi infrastructure — it operates regardless of sentiment. During corrections, leveraged traders need to manage positions, driving protocol usage. The paradox: AAVE price drops while Aave protocol usage increases. That divergence often corrects.
Technical View:
$150 is critical support — the 200-day MA zone. A hold targets $200 recovery. A breakdown risks $130. Protocol revenue trends more important than short-term price action.
🎯 Key Levels:
Support: $150 | Resistance: $200
24h Range: $156.83 - $177.30
💡 "Liquidations need a lender. Aave profits from the chaos it seemingly suffers from. That's DeFi infrastructure."
What's your take? Drop a 🔥 for bullish, ❄️ for bearish 👇
#Aave #AAVE #DeFi #Lending #CryptoNews
Disclaimer: This content is for educational purposes only and should not be considered financial advice. Always do your own research (DYOR) before making any investment decisions.
