👻 $AAVE : Buy the Dip or Catching a Falling Knife? 🔪
$AAVE has taken a 35% hit, dropping from $178 to the $113-$128 range. What is happening, and where is the bottom? 📉
🔍 Why the Dump?
The recent crash wasn't just market sentiment—it was a liquidity crisis. A major trading firm (Trend Research) reportedly faced massive liquidations on leveraged ETH positions borrowed via $AAVE , forcing a sell-off that dragged the price down.
📊 Technical Snapshot (See Chart):
Trend: Short-term Bearish 🐻. Lower highs and lower lows since mid-Jan.
Key Support: $100 - $110. This is a psychological floor. If it breaks, we could see double digits.
Key Resistance: $137. We need to reclaim this level to flip bullish again.
🚀 The Silver Lining:
Despite the price action, Aave’s fundamentals remain rock solid with $30B+ TVL. The upcoming V4 upgrade is a massive catalyst waiting in the wings.
💡 Verdict:
Watch for consolidation around $115. Aggressive traders might spot an entry here, but conservative investors should wait for a daily close above $130 to confirm the reversal.