Gate News update: The DeFi sector continues to face persistent pressure. On April 6, AAVE suffered a notable temporary selloff; during the session, it briefly fell below $84, marking one of the largest single-day declines in months. Although it later rebounded to around $94, the $100 key threshold has shifted from support to resistance, and the market structure has clearly weakened.
From a technical perspective, bearish signals on the daily timeframe still dominate. The SuperTrend indicator is above $107, putting a cap on rebounds. The MACD remains in negative territory, indicating that downward momentum has not yet ended. Although the long lower wick suggests some buying interest at lower levels, price is still far from the key breakout area, and the short-term trend has not yet turned.
On the fundamental side, BGD Labs announced that it is ending its cooperation with the Aave protocol, adding uncertainty to the upcoming V4 upgrade cycle. Aave founder Stani Kulechov previously emphasized that the protocol’s risk system is stable, but governance disagreements have begun to affect market expectations.
Key price levels have become the focus of trading. The area around $92 forms near-term support. If it breaks, price may retest the $84 low, or even move into the $80 range; that level also coincides with a Fibonacci retracement support. On the upside, only by regaining stability above $100 and breaking through the $107 trend resistance could the market potentially restore a neutral structure and open room for a rebound toward $112.
On-chain and derivatives data also look cautious. Open interest declines in line with price, reflecting that deleveraging by longs is leading rather than fresh short positions being added, which lowers the probability of a strong rebound in the near term. Although Grayscale Investments is advancing an Aave-related ETF plan and it could become a catalyst in the medium to long term, short-term prices are still dominated by market sentiment.
In the current environment, AAVE’s performance depends more on broader DeFi capital flows and changes in risk appetite. Whether the $100 level can be reclaimed will be the core signal for judging whether the trend has reversed.
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