Liquidity tightening leads to price stagnation. Coinalyze's 2-hour chart shows that AAVE's price is stagnant at $248 due to liquidity tightening.
Coinalyze's 2-hour chart shows that AAVE's price fluctuated between $248 and $284, with the recent rebound failing to break through previous highs.
In the past two days, the liquidity in the order book has decreased, exacerbating the sideways trend.
From June 24 to July 1, the number of long and short liquidations surged, lacking a sustained directional trend. The price eventually stabilized in a narrow range of $260 to $270, but momentum has weakened.
As long as the price fails to break through $284 or fall below $260, AAVE will stagnate within that range, and momentum will also weaken.