SEC approval surprisingly caused a 3% drop. When will AAVE stop the bleeding?

Question

【Crypto World】After the positive regulatory news, AAVE actually declined— the U.S. Securities and Exchange Commission(SEC) halted its investigation into the protocol and did not initiate enforcement actions. This should have been a good signal. But reality is harsh; the price still dropped over 3%, currently hovering around $185.

With a market cap of $3.5 billion, AAVE is now in a somewhat awkward position. The overall bearish market sentiment has overshadowed the positive regulatory news, and technical indicators are also sending mixed signals. The key support level has already been broken.

The locked assets in the V3 version are not insignificant—over $32 billion in TVL. However, this doesn’t change the situation of the price repeatedly testing the wide range between $130 and $355. The next line of defense is around $130; whether it can hold depends on market sentiment.

Fundamentals are solid, but technicals are dampening the mood. This kind of disconnect is quite common nowadays.

SchroedingersFrontrun · Accepted Answer

Good news can't save everything; this is true despair.

token_therapist · Answer

Regulatory positive news leads to a drop? How bearish does that make you feel? Are all mainstream coins this miserable?

BottomMisser · Answer

Good news ironically causes a sell-off; this market is really ridiculous.

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Support levels are all broken; I need to prepare my bullets at $130.

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Regulatory positive news can't save it; do we really understand what the problem is?

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Back when it was at 185, I didn't buy in; now I'm waiting to bottom fish, but I'm afraid it might never come back.

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SEC approval causing a drop? What kind of mentality is that... Retail investors have already sold off.

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This wave looks very uncertain; the gap from 130 to 355 is so big that no one can say for sure.

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As for Aave, even good news can't stop the bears' hammer.

ChainChef · Answer

sec cleared it but the recipe still tastes off... 185 seems undercooked for bullish news tbh. market's got no appetite rn, that's the real problem—not the token itself

DataOnlooker · Answer

Good news can't save it; this is the real bear market.

DefiEngineerJack · Answer

lol sec gives them the green light and aave still dumps 3%... *technically speaking* the market structure here is fundamentally broken if positive regulation signals can't even hold support