AAVE Price Drops 4% Amid Internal Chaos, Slips Below $92

While the bullish momentum is slowly fading away, the majority of altcoins have witnessed a small drop on Thursday.

Following this downward trend, one of the leading cryptocurrencies, $AAVE, saw its price plunge by around 4%, declining its value from $95.09 to $90.11, according to CoinMarketCap. The cryptocurrency currently holds a market capitalization of around $1.38 billion with a daily trading volume of around $285 million.

Internal Issues at Aave Labs Spark Debate Over Management

In the last few months, Aave Labs, the main entity behind the protocol, has been facing internal issues as many important partners have left the coalition.

In April, Chaos Labs, which was responsible for risk management for the last 3 years, announced its plan to exit the platform after saying that there was a “fundamental misalignment” in how to manage risks. Not just this, they have clearly mentioned the upcoming Aave V4 upgrade.

????I wouldnt be surprised if $AAVE keeps dropping ????

Honestly, Ive never seen a crypto project sustain long-term when the founder gets too greedy. They only need a fair share of a big pie, enough to stay motivated while the whole ecosystem grows together. But instead, they try…

— Tanaka (@Tanaka_L2) April 7, 2026

According to Chaos Labs, there was not enough budget and resources available to ensure the safety of the new upgrade.

Not just this, there are other groups like BGD Labs and ACI who have also stepped away from the platform after citing disagreements in the future planning of V4. Some team members were saying that the entity was working so hard on V4 and, at the same time, criticizing the previous V3 version.

These back-to-back departures have created a lot of pressure on the team and raised some serious questions about who will manage the important tasks in the absence of previous partners, including risk checks. Such a situation in the protocol might create instability for

Technical Indicators Suggest Bearish Pattern

According to TradingView, the cryptocurrency is currently in bearish mode. The chart is currently creating a falling trend channel on the long-term timeframes. According to the experts, this pattern suggests a further downside until the upper boundary of the pattern is cleared.

(Source: TradingView)

Popular indicators are also giving a strong signal right now. The majority of moving averages, including MA5 and MA200, are confirming the dominant downtrend.

The 14-Day Relative Strength Index is currently revolving around 55, which means that the cryptocurrency is in neutral territory without being either oversold or overbought.

There is immediate support at around $91 and major resistance at around $94 to $95. If the cryptocurrency falls below $86, it could open the door towards the $82 levels. While oversold readings may spark a small bounce. However, this is completely dependent on the overall cryptocurrency market.

On the price chart, $AAVE has created a potential double bottom pattern. This pattern is mostly considered a bullish signal for traders. The token is now testing the red resistance zone. If the cryptocurrency falls below this level, there will be more downfall in the cryptocurrency. On the flip side, if the cryptocurrency manages to resist this downfall and hold above the red resistance zone, it might see some rebound.