AAVE
A security breach involving Binance has triggered fresh uncertainty across the cryptocurrency market, putting Aave (AAVE) under additional selling pressure. Following the incident, Aave froze its markets across multiple networks as a precautionary measure, preventing users, including the suspected exploiter, from opening new supply or borrowing positions. Although the decision was intended to limit potential risks, AAVE experienced a sharper decline than Bitcoin and Ethereum.
The broader crypto market also reacted negatively. Bitcoin declined 3.46% and Ethereum fell 3.93% over 24 hours, while AAVE dropped 5.67%. More than $1.5 billion in liquidations swept through the market, with long positions accounting for the majority of forced closures. The combination of security concerns and widespread liquidations intensified selling pressure, particularly across DeFi-related assets.
Despite the recent weakness, AAVE’s longer-term market structure has not been completely invalidated. The token rallied approximately 214% between June and September, climbing from around $60 to $188 before entering a correction. Since reaching that high, AAVE has retraced roughly 33%, bringing the $113–$115 area into focus as a critical support zone. A weekly close below approximately $113.40 could weaken the bullish outlook, while successfully defending this level may preserve the possibility of a recovery toward the $213–$240 range.
The immediate technical picture, however, remains fragile. AAVE has already lost the $140 support zone, while daily indicators continue to signal bearish momentum. The price has also moved below the fair value gap near $129 and is testing a bullish order block around $115. If broader market selling continues and buyers fail to defend this area, AAVE could experience a deeper bearish shift.
For swing traders, opening long positions during this period carries considerable risk. A convincing recovery above $120, supported by stronger buying pressure, could provide an early indication that demand is returning. Until then, the $113–$115 zone remains the most important area to monitor, particularly as market sentiment continues to react to the Binance security incident.
Ultimately, AAVE faces a critical test as security concerns and bearish market conditions challenge its price structure. Defending $113.40 could preserve the possibility of a longer-term recovery, but a decisive breakdown may expose the token to further losses. Traders should watch for clear signs of demand before treating the current correction as a buying opportunity.
Bitcoin
