Aave Price Tumbles Below $90 Amid Selling Pressure

Aave's price has taken a hit, dropping by 11% over the past 48 hours. The token reached its high at $101.57 on Friday, July 31st, but was unable to hold above the $100 resistance zone.

The decline in price is accompanied by selling pressure in both speculative and derivatives markets. According to Coinalyze data, Open Interest has dropped by 5% over the past 24 hours, with the Spot CVD also trending downwards.

Stani Kulechov, Aave's founder, recently announced plans to scrap 50 reserve assets with low adoption and wind down deployment on six chains. This move may be seen as a sign of the protocol's focus on efficiency and cost-cutting measures.

The technical indicators are also pointing towards further downside for Aave. The swing structure on the 1-day chart is bearish, with the downward continuation confirmed in May when the previous swing low at $85.05 was breached.