Aave is in a downward trend since April, despite intense volatility. Due to the massive sell-off in cryptocurrency, major altcoins are suffering extended losses. This coin saw lower levels and increased selling pressure in the week that passed.
Altcoin also saw high volumes of trading, which led to increased selling pressure. The one-day chart also shows a falling asset market.
Aave may soon be in the $50 support zone if the price drops below the current level. Aave is among the most prominent losers in this industry, having suffered a total loss of more than 51% within the past week.
One-Day Chart: Aave price analysis
Aave’s price was $74.80 as of the writing. In January 2017, the altcoin was trading at this level. Aave is showing a strong downtrend, as it recently broke below its support line for over one year.
There is a chance of price reverses, but it cannot be excluded because altcoin broke below its trendline. Prices often rebound after sharp falls. Aave might target $111 in the event of a price rebound.
A further drop in price would see altcoin trading near $61 and hovering around $50. The market was bearish as the red color indicated that the volume of trading increased.
Technical Analysis
Aave was in middle of a sharp sell-off, the coin hadn’t registered the same selling pressure in the last one year. This indicates excessive market bearishness. The Relative Strength Index was close to 20. This indicates that the coin is in an oversold state.
Aave was last at the same point in December 2020. Bollinger Bands showing volatility suggested potential volatility. These bands are indicative of higher volatility in prices.
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Amazing Oscillator displays the market’s price momentum. Indicator was visible below half-line on the daily chart. This was indicative of bearish price movement. Aave cannot show any recovery on charts unless buyers come back.
As the market continues to strengthen, the chances for a revival in the near trading session seem low. Chaikin Money Flow demonstrates capital outflows as well as inflows.
The indicator can be seen at the bottom of the chart and continues to trend southbound when capital outflows exceed capital inflows.
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Featured Image from UnSplash. Chart by TradingView.com