AAVE price crashed to a two-month low as cryptocurrencies retreated amid US inflation risks after Trump’s tariffs. Still, the AAVE coin has formed a hammer pattern, pointing to a 65% rebound as its founder cheers its resilience during the crypto sell-off.
AAVE Price May Rebound Amid Strong Resilience
AAVE price retreated to an intraday low of $195.85 on Monday, down by 50% from its highest level in November last year.
This decline may be offset by the strong network performance, which Stani Kulechov, its founder, hailed in a social media post. He responded to a user who noted that AAVE had handled a $200 million liquidation in the last 24 hours. This was the biggest liquidation since August last year, and is a sign that the system was working.
In an X post, Vivek Gupta, the Chief Technology Officer (CTO) at Okto, noted its resilience was due to AAVE’s strong governance, deep liquidity across the ecosystem, and proper liquidation mechanisms. He expects that the network will do much better in the next upgrades.
AAVE handles $200m liquidations in 24 hours
AAVE is the biggest player in the lending and borrowing subsegment in the DeFi industry with over $18 billion in assets. It has made almost $740 million in fees in the last twelve months, making it one of the top profitable players in the crypto industry. It is also one of the holdings of World Liberty Financial, which holds almost 20k tokens worth over $4 million.
AAVE Coin Technical Analysis: Can It Rebound 65%
The daily chart shows that the Cardano price crashed to a low of $195.85 on Monday as coins crashed. It moved briefly below the lower side of the bullish flag pattern. A bullish flag is made up of a long vertical line and some consolidation.
As such, Monday’s crash may have been a false breakdown since the coin has formed a hammer candlestick. A hammer has a long lower shadow and a small body without an upper shadow. It is one of the most bullish patterns in technical analysis. AAVE coin has moved above the 200-day Exponential Moving Average (EMA).
AAVE Target Prices
The bullish flag pattern points to more AAVE price gains this month. If this happens, the value of AAVE may rebound by about 65% from the current level to a high of $398, its highest level in November last year.
However, a drop below Monday’s low of $195 will signal that the crash was not a false breakdown. It will point to more drop to the ultimate support at $125, down by 47% from the current level.
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