- Aave experienced over $200 million in liquidations, but bad debt decreased, showing resilience despite market volatility.
- Despite a 6.25% price drop, the altcoin maintained its key support at $230, with resistance at $360.
Aave [AAVE] faced significant liquidations in the past 24 hours, totaling over $200 million. This marked the largest liquidation event for the platform since August 2024.
These liquidations accounted for around 30% of all Aave liquidations to date, indicating increased market volatility.
Despite the high volume of liquidations, Aave’s system managed to avoid a major increase in bad debt, which actually decreased.
The data suggests that despite severe liquidation events, the platform’s overall health remains strong. The total debt amount liquidated stands at approximately $369,580.
Source: X
Will diagonal support hold for a sustained rally?
Aave’s price saw a sharp decline, dropping by 5.12% to $259.34. The key resistance level was at $360.00, with support at $230.00, indicating potential future price fluctuations.
Technical indicators showed a gradual build-up of support at lower levels, which could provide a foundation for recovery if the market stabilizes.
AMBCrypto’s analysis suggests that Aave has been moving within a channel, with strong resistance forming at $360.
AAVE/USD Source: TradingView
The diagonal support and resistance line indicate potential rebound points for Aave, potentially leading to an upward corrective movement if the market stabilizes.
Liquidations breakdown and network health
The liquidations in the last 24 hours occurred amidst growing concerns over broader market sentiment. The total liquidations in the Aave v3 Ethereum [ETH] market amounted to $205,443,590.
At the same time, Aave’s network continues to show a relatively healthy liquidity pool with a total value locked (TVL) of $18.3 billion.
Source: X
Despite the high levels of liquidation, Aave’s ecosystem has been demonstrating stability, particularly in terms of collateral management.
Data indicates a growing number of wallets eligible for liquidation, but the reduction in bad debt indicates the system’s resilience remains intact.
Who is in control, bulls or bears?
Investors are currently navigating a turbulent phase, as evidenced by Aave’s price movement and liquidations.
However, market sentiment appears divided, with the altcoin maintaining a significant position despite the broader downturn.
The bullish and bearish market sentiment has remained relatively balanced, with bulls slightly outnumbering bears.
Source: IntoTheBlock
Looking ahead, Aave’s price and market behavior will depend on whether the platform can maintain its support levels.
Read Aave’s [AAVE] Price Prediction 2025–2026
The presence of key resistance points like $360.00 suggests that Aave could face challenges in regaining upward momentum.
Still, if the platform continues to effectively manage its collateral and debt risks, a price recovery could be on the horizon.
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