AAVE: Drops 18% on KelpDAO Exploit

The KelpDAO exploit hammered AAVE, creating bad debt on the Aave protocol and triggering an 18% price plunge today. Whales unloaded heavily: smaugvision dumped 20,015 AAVE for 2.06 million USDC at $103 average, whale 0xFC56 sold 20,000 AAVE for 2.05 million USDC at $103, and whale 0xA2E4 offloaded 19,666 AAVE worth $1.95 million for 505.65 ETH ($1.18 million) and 10.11 WBTC ($765K) at $99 average. This DeFi exploit impact echoes recent crypto market crashes, fueling AAVE price prediction debates as investors eye broader Bitcoin and BTC trends for recovery signals.

On the 4-hour chart, AAVE trades at $91.86 in a clear bearish structure, pressing against lower support at $95.42 from the volatility bands while the EMA50 at $103.55 and EMA200 at $103.13 act as formidable overhead resistance levels capping any rebound attempts. MACD confirms the death cross with a -0.84 reading, signaling sustained downside momentum, yet the neutral RSI at 31.08 hints at potential exhaustion near these volatility exhaustion targets—watch for a confluence where price tests that lower band support, possibly stabilizing before a retracement toward the clustered EMAs if broader market flows from assets like Bitcoin provide lift.