- Aave price has formed a large double-top pattern on the weekly chart.
- The network’s total value locked has plunged from $44 billion to $14 billion, a $30 billion wipeout.
- It has raised over $161 million after the recent Kelp DAO hack.
AAVE price remains in a strong downward trend and is hovering near its lowest level since August 2024 amid the fallout from the KelpDAO hack. It crashed to a low of $84.46, down from last year’s high of $400, and this trend may continue after the token formed a double-top pattern.
Aave Raises $161 Million After the KelpDAO Hack
Aave, a top player in the decentralized finance (DeFi) industry, has come under intense pressure in the past week as the fallout surrounding the KelpDAO hack continued.
In the aftermath of this hack, the total value locked (TVL) in the network has slumped to $14.43 billion, the lowest level since April last year. It has declined from a record high of over $44.7 billion. This slump has occurred despite the recent rise in Ethereum’s price.
Aave suffered millions of dollars in credit losses, as most of the stolen rsETH tokens were held as collateral by funds on Aave.
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At the same time, some notable players in the crypto industry have contributed substantial sums to cover the bad debt from the KelpDAO exploit. It has raised over $161 million, with Mantle and Aave DAO contributing 55,000 ETH, currently worth over $127 million.
Stani Kulechov, Aave’s founder, provided 5,000 ETH, while Ether. Fi, Lido, and Golem Foundation provided 5,000, 2,500, and 1,000 ETH, respectively. Other top players that have also hinted at providing funds are LayerZero, Ethena, Ink Foundation, and Frax Finance.
The recent transactions have led to a surge in network fees. Data compiled by DeFi Llama shows that the network has raised over $55.95 million this month, up from $47.57 million the previous month. Its revenue has jumped to $7.36 million from $6.4 million the previous month.
Aave Price is at Risk of Further Weakness as Double-Top Forms
The weekly timeframe chart shows that the Aave price has come under pressure in the past few months. It formed a double-top pattern at $384 and a neckline at $113.04, its lowest level on April 7. A double top is one of the most common bearish reversal patterns in technical analysis.
The coin has remained below all moving averages and the Supertrend indicator. At the same time, the Relative Strength Index (RSI) has remained below the Ichimoku cloud indicator.
The token will likely continue to fall, potentially to an all-time low of $48.53. Such a move would be a 47% crash from the current level.
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