AAVE Price Stalls Amid Recovery Plan Uncertainty

The cryptocurrency market remains uncertain for Aave (AAVE) as it awaits clarity on its recovery plan. The proposed rsETH collateral rebuild after the Kelp DAO exploit has been met with cautious optimism from traders.

According to a governance-led process, temporary oracle adjustments and controlled liquidation of the attacker's positions are key components of the proposal. This structured approach aims to reduce risks while rebuilding backing for rsETH and minimizing fallout without spreading losses across users.

The near-term outlook for AAVE heavily depends on the recovery plan's execution. Technical analysis shows immediate support near $96, with a failure to hold this level potentially shifting market sentiment towards caution.