Aave has been under intense pressure following the recent KelpDAO exploit, which exposed vulnerabilities across the broader DeFi ecosystem. The attacker reportedly used a bridge-related flaw to mint fake collateral, borrow real ETH from Aave, and leave behind bad debt estimated at nearly $280 million. The impact was immediate—AAVE price
On the downside, the $85–$90 range remains a critical support zone. Price recently swept liquidity below this level before bouncing back toward $93, but the recovery lacks conviction. Momentum indicators support this view—RSI is hovering around mid-levels (~45–50), showing no strong bullish momentum, while CMF remains negative, signaling that capital inflows are still weak. Aave’s current setup reflects a clear mismatch between price attempts and underlying strength. While short-term bounces are occurring, rising exchange reserves, declining protocol activity, and weak price structure all point toward distribution rather than accumulation. Unless AAVE price can reclaim and hold above the $100–$105 resistance with strong volume and improving on-chain signals, the path of least resistance remains uncertain, with downside risks still in play. For now, the data suggests that this is not a confirmed recovery, but a fragile consolidation phase where any breakdown could trigger another leg lower.The Bottom Line
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