AAVE posted one of its sharpest one-day drops in months on April 6, sliding to an intraday low of $83.92 before recovering to $94.66. The token had closed the previous session at $94.15, so the decline briefly exceeded 11%. The move came as selling pressure hit the DeFi sector and broader risk-off sentiment weighed on crypto markets. Most importantly, the break confirmed that $100, which had acted as structural support for months, is now functioning as resistance.
Daily chart shows a damaged structure below $100
On the daily timeframe, the Supertrend indicator stands at $107.82, well above current price and limiting any near-term recovery attempt. The MACD histogram remains in negative territory, and the signal line is still below zero, showing that downside momentum has not yet reversed. The April 6 candle formed a long lower wick from $83.92, a sign that buyers stepped in at intraday lows, but the rebound to $94.66 still left AAVE far from reclaiming the $100 threshold. Price recovered, but the broader setup stayed weak.
There was also a protocol-level development. BGD Labs, a core technical contributor to Aave, formally ended its engagement on April 1, citing governance tensions. Aave founder Stani Kulechov had previously written on X that the protocol’s risk infrastructure “has historically processed over 1,200 payloads and 3,000 parameters without issues.” Even so, BGD Labs’ exit adds fresh uncertainty around development continuity as the protocol moves toward its V4 launch cycle.
$92.29 is the first support level on the 4-hour chart
On the 4-hour chart, the Supertrend sits at $92.29 and is acting as dynamic support. The 4-hour MACD histogram is close to flat, which points to a pause in downside momentum rather than a confirmed reversal. If AAVE loses $92.29 on a daily closing basis, the next likely retest is the intraday low at $83.92. Below that, the next major support is the $80 round-number zone, which also aligns with the 0.786 Fibonacci retracement of AAVE’s 2024 to 2025 rally, placing key support in the $80 to $85 area.
On the upside, $100 remains the first resistance level that bulls need to reclaim. A daily close above the Supertrend at $107.82 would be the minimum signal needed to shift the short-term outlook back toward neutral. If price can recover above $100 and hold there with volume support, the next upside level highlighted in the source analysis is $112, based on a possible ascending structure visible on the 4-hour chart.
ETF filing is a longer-term factor, while futures data points to deleveraging
Institutional and derivatives signals add context but do not yet improve the short-term picture. Grayscale Investments has filed to convert its Aave Trust into an ETF on NYSE Arca, a development that could matter for long-term demand, though the filing offers no immediate price support. CoinGlass data shows that AAVE futures open interest has fallen alongside price in recent sessions. That pattern is more consistent with long-side deleveraging than aggressive fresh short positioning, which lowers the odds of a sudden short-covering bounce.
If the $92.29 support on the 4-hour chart fails, a move back toward $83.92 becomes more likely. The $80 zone remains the final major structural support discussed in the current setup.