AAVE price prevents an almost 10% crash as a $60 million short hack fails
|- AAVE price bounced off its immediate support to trade at $57.81.
- AAVE revealed the hacker attempted to short 92 million CRV but failed in gaining profits as Curve's price shot up following its stablecoin launch.
- If AAVE's value closes below $50, it could invalidate the bullish thesis and crash by almost 19%.
AAVE price noted a minor fluctuation over the last 24 hours following a hacker's attempt to exploit the platform. However, broader market developments turned the tables around, resulting in the exploiter failing in his attempt. The altcoin's price was quick to recover, keeping AAVE holders away from immediate losses.
The hacker, known to be Avraham Eisenberg, strived to make bucks off of AAVE's vulnerability by shorting almost $60 million worth of CRV tokens. However, Eisenberg's plans failed following a bullish trigger from Curve. As explained by AAVE,
"The attempt to short CRV on Aave has been unsuccessful, and the user lost ~$10M USD from the liquidations. The user has been fully liquidated, but despite this, Aave has accrued a much smaller (~$1.6M USD) bad debt position as of today's CRV price."
The trigger happened to be the release of the whitepaper of Curve's forthcoming stablecoin. This pushed CRV's price up, preventing a crash and consequently saving the platform from the exploit.
Following this, AAVE governance received a proposal that suggested the use of Gauntlet's insolvency fund and Aave Treasury to clear the bad debt. This positive development saved AAVE price from crashing by 10% in the last 24 hours.
AAVE price marching toward resistance
AAVE price prevented a 10% crash on November 23, but the altcoin still needs to find bullishness to engage in a recovery rally. In order to achieve this bullish rally, though, AAVE will first have to breach some crucial hurdles tonight.
In order to initiate recovery, AAVE price will have to flip the $61.5 resistance into a support floor. This would enable the altcoin to push and breach the critical resistance level at $63.99. Closing above it would kick-start a rally for the cryptocurrency pushing the price towards $69.8.
BTC/USD 8-hour chart
On the other hand, if bulls fail to support AAVE price, it could trickle down to tag its immediate support level at $53.6. Bouncing off of it would keep the possibility of recovery alive but falling below it will push the price to the critical support at $50.2. This would be the buyers' last chance because a daily candlestick close below it would invalidate the bullish thesis. The price movement following this would result in AAVE tagging the June lows of $46.5.
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