AAVE/USD indicates weakness

AAVE/USD indicates weakness

Analysis


Negative sentiments related to China’s crackdown on cryptocurrencies have affected market expectations for most digital currencies.

Aave price is hovering around $276 as of this writing, as the intraday movement sees bulls looking for more momentum with a 3% rally in Wednesday’s trading. This slight change in price action comes at a time when the larger market is seeking to halt the widespread downward pressure it has experienced Bitcoin Support testing is about $42,000.

Altcoin market is showing resilience, however, bullish aggressiveness may see Aave rebound along with major cryptocurrencies like EthereumAnd Cardano and Solana. All three corners are showing signs of a short-term positive reversal after retesting the key support areas around $2,900, $2.10, and $138, respectively.

AAVE . Price Forecast

The AAVE/USD pair rebounded from the $256 low, as buyers look to find fresh momentum after dropping from the $415 highs reached on Sept 16. However, the technical picture is tilting slightly to the downside as can be seen on the daily chart.

It seems that the breach of the ascending triangle pattern has nullified the prevailing bullish trend before the market’s decline this week. There is a hint of a bearish flag forming, a pattern that may indicate a bearish continuation.

We also have the 50 SMA and the 100 SMA curves which indicate the potential for a correction to push prices lower. The future outlook below will be strengthened further if the RSI reaches a new low below the breakeven point.

AAVE/USD daily chart. Source: TradingView

If this scenario materializes, further losses towards $250 would allow AAVE/USD to continue falling to $212 and then the psychological support at $200. The next major demand area under this area is around $150.

On the upside, AAVE is likely to look for a daily close above $295, an area that could show minor resistance. If this area is established as support on the next two candles, the upside could target further gains above the 100 SMA ($322), with fresh targets highlighting the 50 SMA ($360).

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