In the past 24 hours, Aave [AAVE] encountered a significant wave of liquidations, amounting to a hefty $200 million. This incident marked the most substantial liquidation event for the platform since August 2024.
These liquidations, constituting roughly 30% of Aave’s entire history of liquidations, point towards escalating market volatility.
Despite the substantial liquidation volume, Aave’s system adeptly dodged a notable surge in non-performing debt, which, in fact, witnessed a decline.
Data indicates that even though the liquidation events were harsh, the platform’s overall robustness remains intact. This is evident in the total debt amount liquidated, standing at approximately $369,580.
Can the Diagonal Support Sustain a Prolonged Rally?
Aave’s price encountered a sharp drop, plummeting by 5.12% to reach $259.34 at the latest assessment. A critical resistance level hovered at $360.00 while support rested at $230.00, indicating possible future price fluctuations.
Technical signals hinted at a gradual accumulation of support at lower levels, potentially laying the groundwork for recovery if market conditions stabilize.
An analysis by CryptoCrypto illustrated Aave’s movement within a channel, with a robust resistance forming at $360.
On the flip side, the diagonal support and resistance line outlined probable rebound areas for Aave, hinting at a corrective upward movement if the market exhibits signs of steadiness.
Deconstructing Liquidations and Assessing Network Health
The recent spate of liquidations over the preceding 24 hours unfolded amidst escalating apprehensions regarding the broader market sentiment. The total liquidations in the Aave v3 Ethereum [ETH] market clocked in at $205,443,590.
Simultaneously, Aave’s network continued to flaunt a reasonably healthy liquidity reservoir, with a total value locked (TVL) at $18.3 billion.
Despite the elevated liquidation levels, Aave’s ecosystem exhibited resilience, notably in its collateral administration.
Data showcased a mounting count of wallets eligible for liquidation, yet the reduction in bad debt signifies that the system’s resilience remains unscathed.
Bulls or Bears: Who Holds the Reins?
Presently, investors are maneuvering through a turbulent juncture, as evidenced by Aave’s price trajectory and liquidation activities.
Nonetheless, market sentiment appears divided, with the altcoin preserving a substantial stance despite the broader market dip.
The balance between bullish and bearish market outlook has stayed relatively steady in recent weeks, with bulls marginally outweighing bears.
Looking forward, Aave’s price and market conduct will heavily hinge on its ability to uphold support levels.
The existence of pivotal resistance thresholds like $360.00 implies that Aave might face hurdles in regaining upward momentum.
Nevertheless, if the platform effectively manages its collateral and debt exposure, a price recovery could be on the horizon.