Aave (AAVE) has fallen below the critical $100 support level, hitting a three-week low of $96 amid a wider market downturn. The altcoin’s price dropped 7.7% as sellers aggressively dominated the market. Key momentum indicators and exchange flow data both suggest continued bearish pressure, with the token’s next potential support near $92.
The native token of the Aave protocol has breached the $100 support level, falling to a three-week low. At press time, AAVE traded at $97, reflecting a 7.7% daily decline and a market capitalization loss of over $200 million.
This drop placed the asset below its short-term Moving Averages, indicating strong downside pressure. Market participants turned bearish, with the Bulls vs. Bears metric turning negative for the first time in over a month.
Exchange activity data from CryptoQuant showed 79,000 AAVE tokens flowing into exchanges versus 74,000 flowing out. The altcoin’s Netflow remained positive for a sixth consecutive day, signaling sustained seller dominance.
Furthermore, the Exchange Supply Ratio jumped to a monthly high of 0.137. This increase suggests rising selling activity and reduces the token’s scarcity by boosting the supply available for immediate sale.
The Relative Strength Index fell to 34, nearing oversold territory and confirming seller control. Traditionally, such market conditions have strengthened downward momentum, typically resulting in lower prices.
If sellers maintain control with little buyer resistance, AAVE could slide toward $92. For a significant trend reversal, bulls would need to reclaim the $100 level and the key Moving Averages above $107.
