Aave is Going to Zero as Curve DeFi Risk Grows and Green Crypto Chimpanzee Could Be the Next Crypto to Explode – $1.1m Raised
As the Curve liquidity pool exploit continues to haunt price action, leading DeFi protocol Aave has suffered a -16.25% downside move - leading some to say Aave is going to zero - explore Aave's short-time frame outlook in Aave price analysis.
DeFi markets have endured an anxiety-ridden week after a tumultuous cyber exploit on the weekend saw multiple Curve liquidity pools raided for $47m.
Cyber security experts traced the source of the issue back to vulnerabilities in the Vyper (programming language) smart contracts managing liquidity pools, according to a tweet from the Curve DAO team.
Among the worst hit, more than $11m in cryptocurrency was been stolen from NFT lending protocol JPEG'd (more than 1/3rd of the JPEG'd total value locked).
And Aave has been unable to escape the pressure of the situation too, after Tron Founder Justin Sun withdrew $52.5m in stablecoin from the Aave platform to purchase CRV coin in a move aimed at bolstering Curve post-exploit.
As the dust settles following the Curve exploit, Aave continues to face downside momentum, with price currently trading at $63.17 (a 24-hour change of -3.7%).
This comes following a cascading movement, triggered on Sunday by the Curve news, which has so far seen Aave bleed-out -16.25%.
The seismic downside move caught holders off-guard, as sell-pressure saw price in free-fall, crashing through key technical supports such as the converged 20DMA and 200DMA.
By losing these critical moving average supports, Aave price action is faces a complete meltdown to lower trendline support - with few points of localised support to be capitalised on in-between.
Some silver-lining can be found in Aave's RSI which is showcasing bullish divergence at 36.9 (a classic oversold signal).
But this
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