AAVE Is Breaking Down but Long-Term Setup Hints at $10,000

Aave doesn’t look as steady as it did a few months ago, and you can see that clearly in the AAVE price. It’s dropped below $90, which puts it at levels we haven’t seen since mid-2024.

And this isn’t just about the chart looking weak. There’s been a bit of a shake-up behind the scenes too. Chaos Labs, the team handling risk management for years, has stepped away. Before that, BGD Labs and ACI also exited.

That kind of pattern starts to raise questions. Even though the team has reassured users that everything is still running smoothly, the timing of these exits alongside the drop in the AAVE price is hard to ignore.

The AAVE chart lost a key level

We had a look at the chart shared by Crypto Patel, and the big issue is pretty clear: the AAVE price has broken below a major trendline. This wasn’t some minor level. It had been holding the structure together since the 2023 recovery, guiding price all the way through the last rally. Once that broke, the tone changed completely.

Now instead of trending upward, the AAVE price is drifting lower, trying to find where demand might show up again. 

$AAVE Drops Below $90 – Lowest Since July 2024

Chaos Labs, Aave’s main risk manager since 2022, just announced its exit from the protocol.

Why it matters:
▪️ Managed $26B+ TVL with zero bad debt
▪️ Cited “fundamental misalignment” on V4 risk strategy
▪️ Even a $5M budget offer… pic.twitter.com/2ZZNf20UqH

— Crypto Patel (@CryptoPatel) April 7, 2026

As price moves down, all eyes are on the $55–$70 range. This zone matters because it’s where buyers previously stepped in before the last big move. It acted as a base, and from there, AAVE went on a strong run. So naturally, the market is watching to see if the same thing happens again.

If the AAVE price reaches that area and starts to stabilize, it could start to look like a reset instead of a breakdown. That is where the bigger upside scenarios, even the $1,000+ talk, start to come back into the conversation.

This kind of move isn’t new

If you’ve followed AAVE for a while, you know this isn’t unusual.

The AAVE price has gone through some brutal cycles before. The drop after the 2021 peak wiped out more than 90% of its value. Even in the current cycle, we’ve already seen declines close to 80%.

So the move from $370 down to where we are now fits into that pattern. It’s harsh, but not out of character. What’s different this time is the broken structure and the uncertainty around whether support will hold again.

What’s next for AAVE?

At this point, everything comes down to that $55–$70 zone. If buyers step in and the AAVE price holds there, this could turn into a familiar setup: a deep reset followed by accumulation, and eventually another strong move higher.

If it doesn’t hold, then things can get a lot heavier on the downside. Right now, the AAVE price is stuck between those two possibilities. The breakdown has already happened, but the market hasn’t made up its mind on what comes next.

CoinCodex’s 1-month AAVE price prediction places the token at $124.38, which is close to its current level near $120, indicating a steady, range-bound move in the short term as traders watch for a clearer trend to develop.