Aave's TVL Plummets to $18.6 Billion Following Kelp DAO Hack
- TVL Collapse: Aave's total value locked (TVL) plummeted from $26.4 billion to $18.6 billion, erasing nearly $8 billion and resulting in the loss of its status as the largest DeFi protocol, highlighting the severe market impact of the hack.
- Hack Details: Hackers stole 116,500 rsETH tokens valued at approximately $293 million and used them as collateral on Aave v3 to borrow wETH, leaving Aave exposed to about $195 million in bad debt, underscoring vulnerabilities within DeFi protocols.
- Liquidity Crisis: Aave's USDT and USDC stablecoin pools reached 100% utilization, rendering over $5.1 billion in stablecoins temporarily unavailable for withdrawal, illustrating the severity of liquidity strain and forcing users to wait for new liquidity or loan repayments.
- Market Reaction: The AAVE governance token fell nearly 20% within 25 hours, dropping from $112 to around $89.50, shaking investor confidence, while significant withdrawals from major exchanges exacerbated pressure on the platform.
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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 | 51.989 | 69.165 | 81.729 | 98.905 | 111.469 | 128.645 | 141.209 |
| Fibonacci | 69.165 | 80.525 | 87.544 | 98.905 | 110.265 | 117.284 | 128.645 |
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