AAVE drops 12% to $61 as spot buyers absorb the pain

AAVE recorded one of its sharpest daily declines in recent weeks, falling 12% over the last 24 hours to trade near $61.12. The correction erased a large portion of its recent gains and pushed the asset deeper into its broader downtrend.

Trading activity expanded aggressively during the sell-off, with volume climbing 75.62% to $474.4 million. The rise suggested that market participants remained highly active despite the decline. Rather than signaling a lack of interest, the volume surge indicated that sellers intensified their activity while buyers attempted to absorb part of the pressure. Increased participation, however, failed to stabilize price action.

Despite the heavy correction, the Spot Taker CVD remained buyer-dominant throughout the period. Such behavior suggested that some participants viewed the decline as an opportunity rather than a reason to exit — the eternal "it's on sale" reflex. Price kept falling, indicating that sell-side pressure remained stronger than the demand entering the market. The divergence between buyer-dominant taker activity and declining prices highlighted a market where buyers tried to soak up supply but could not quite regain control.

The weekly chart showed AAVE extending its decline below the critical $87.60 support level after spending months inside a descending channel. Price also remained well beneath the major resistance zone near $128.23, reinforcing the broader bearish structure. Repeated lower highs and lower lows continued defining market direction, while the breakdown below support opened the path toward the next significant level near $50.

Meanwhile, RSI dropped to 27.50 after falling beneath its signal line at 32.32. The reading placed the indicator firmly inside oversold territory and reflected persistent selling pressure across the market. If buyers defend the current area, AAVE could attempt a relief rebound. Otherwise, continued weakness would leave the $50 support increasingly vulnerable.

The liquidation heatmap revealed that the largest concentrations of leverage sat above the current market price. Several notable liquidity clusters appeared between $64 and $66, while another significant concentration emerged around the $69 to $70 region. Recent trading activity already showed AAVE attempting to recover from intraday lows, adding relevance to these overhead targets. Should buyers maintain their presence, the asset could sweep these liquidity pockets before establishing its next direction. On the other hand, failure to sustain the rebound would keep bearish pressure intact and limit the probability of reaching those higher liquidation zones.