Aave's TVL Plummets Nearly $8 Billion After Kelp DAO Exploit
- TVL Drop: Aave's total value locked (TVL) plummeted nearly $8 billion over the weekend due to the Kelp DAO hack, falling from approximately $26.4 billion to $18.6 billion, which resulted in losing its position as the largest DeFi protocol, highlighting the rapid impact of a single security incident on the broader DeFi market.
- Bad Debt Emergence: The hackers used 116,500 stolen rsETH tokens as collateral to borrow wETH on Aave, creating about $195 million in bad debt, which exacerbated liquidity crisis risks and caused Aave's AAVE token to tank nearly 20% from $112 to $89.5 within 25 hours.
- Liquidity Strain: Aave v3's lending pools for USDT and USDC are now at 100% utilization, meaning over $5.1 billion in stablecoins cannot be withdrawn, indicating severe liquidity issues, with only $2,540 currently available for withdrawal from the $2.87 billion USDT pool.
- Market Freezing Actions: Following the Kelp DAO exploit, Aave quickly froze the rsETH and wETH markets to prevent suspicious borrowing, demonstrating the effectiveness of its
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Technical Analysis for AAVE
Technical Sentiment Analysis for Aave (AAVE). As of , Aave (AAVE) is exhibiting a Sell technical sentiment. Our proprietary analysis, which aggregates 4 technical signals, shows that 1 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for AAVE stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, AAVE is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Aave (AAVE) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 79.838 | 85.439 | 89.738 | 95.339 | 99.638 | 105.239 | 109.538 |
| Fibonacci | 85.439 | 89.221 | 91.557 | 95.339 | 99.121 | 101.457 | 105.239 |
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