Aave faces $200M liquidations, but the altcoin still stands strong – How?
The post Aave faces $200M liquidations, but the altcoin still stands strong – How? appeared on BitcoinEthereumNews.com.
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] experienced significant liquidations in the last 24 hours, totaling over $200 million. This marked the largest liquidation event for the platform since August 2024. These liquidations represent around 30% of all Aave liquidations to date, signaling increased market volatility. Despite the high liquidation volume, Aave’s system managed to avoid a major increase in bad debt, which has actually decreased. The data shows that although liquidation events were severe, the overall health of the platform remains strong. This is reflected in the total debt amount liquidated, which stands at approximately $369,580. Source: X Will diagonal support hold for a sustained rally? Aave’s price faced a sharp decline, dropping by 5.12% to its press time value of $259.34. A key resistance level lay at $360.00, while support was at $230.00, suggesting potential future price fluctuation. Technical indicators showed a gradual build-up of support at lower levels, which may provide a foundation for recovery if the market stabilizes. AMBCrypto’s analysis indicates that it has been moving within a channel, with strong resistance forming at $360. AAVE/USD Source: TradingView On the other hand, the diagonal support and resistance line suggested potential rebound points for Aave, possibly leading to a corrective movement upwards if the market shows signs of stabilization. Liquidations breakdown and network health The liquidations over 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 value of $18.3 billion in total value locked (TVL). Source: X…
Filed under: News - @ February 4, 2025 8:24 am