Altcoin Market Under Pressure: AAVE Plunges 11 Percent, XRP's Future Questioned

Governance Dispute Weighs Heavily on AAVE

The price of DeFi protocol Aave has plummeted by approximately 11 percent within 24 hours ^[1]. The trigger for the significant price decline is fresh tensions within the Aave DAO, which noticeably burdened the market at the start of the week ^[1].

At the center of the controversy is a disputed governance decision by Aave Labs. The company unexpectedly moved an ongoing debate about control of core brand assets to a Snapshot vote ^[1]. Several delegates and the original author of the proposal subsequently accused Aave Labs of circumventing the community process and forcing a decision ^[1].

Structural Power Questions Exposed

The dispute exposes structural power questions within the DAO ^[1]. The combination of governance uncertainty, public criticism from leading actors, and unfortunate timing around the holidays is noticeably dampening sentiment ^[1].

Over the last 12 to 24 hours, the Aave price fluctuated in the range of $178.70 as the daily high down to a current low of $156.20 ^[1]. From a technical perspective, the question now arises whether the price slump merely represents an emotional overreaction or initiates a deeper correction ^[1].

Short-Term Outlook Remains Negative

The short-term forecast for AAVE is neutral to clearly bearish ^[1]. Sell-off dynamics currently dominate, and although stabilization is possible, the technical bias remains negative ^[1]. Key support levels are at $156.20 and $150.00, while resistance levels lie at $160.99 and $173.89 ^[1].

A sustained breakout above $173.89 would initiate a short-term recovery, while a break below $156.20 makes further losses more likely ^[1]. Aave is a decentralized finance protocol that enables users to borrow and lend, with the AAVE cryptocurrency serving as collateral for loans ^[1].

XRP: Polarization and Uncertainty

Parallel to the turbulence at Aave, XRP is also under pressure after the cryptocurrency has depreciated sharply in recent weeks and months ^[2]. Hardly any other cryptocurrency polarizes as strongly as XRP ^[2]. While some view Ripple Coin as key technology for global payment transactions, others criticize the project as highly centralized and primarily designed to benefit its founders ^[2].

Twelve years after the first XRP trades, the cryptocurrency nevertheless commands a market valuation of around $110 billion ^[2]. This even surpasses established stock market giants such as Deutsche Bank, Volkswagen, or Rheinmetall ^[2].

Future Remains Unclear

Despite the considerable market capitalization, it remains unclear whether Ripple Coin still has a long-term future ^[2]. Investors should carefully understand the risks and opportunities before making an investment decision ^[1]. Current developments show that both technical and fundamental factors can significantly influence the price development of altcoins.