AAVE slides below a previous support area, here’s how much lower it could drop

Disclaimer: The information provided does not constitute financial, investment, trading or other types of advice and is the opinion of the author only.

  • $73 turned into resistance
  • Bitcoin can’t go above $19.6k either

At the time of writing, Aave has a market capitalization of $1 billion. The lending platform was among the largest in the DeFi sector with TVL valued at $3.7 billion. The last week saw a sharp rise in social activity for the token, but the price did not show an upward trend during the same period.

This is the AMBCrypto price prediction for Aave [AAVE] 2022

The price charts showed a bearish storm behind AAVE. In September, AAVE struggled with the $96 resistance mark. In October, the discount was $80. It seems likely that AAVE could set another foot.

Buyers were weary despite the strong bounce back to $66

Source: TradingView

The $72 support area has been held in hold since mid-September. Several attempts by the bears to bypass this area were met with a wall of buyers. But over time this wall began to crack. At the same time, the price cannot rise above $80. The $81 resistance was not broken, and AAVE also had a bearish market structure on a longer time frame.

Higher time frame charts indicated that sellers remained in control. Therefore, it is a return to the $72 area that traders can look to sell. The Relative Strength Index (RSI) when it was below the neutral level 50 agreed to show some bearish momentum. Volume on Balance (OBV) is also unchanged to indicate the balance between buying and selling volume.

A retest of $74 is likely to be followed by another downside move. $66.3 and $61.5 are the key support levels in the south. This bearish notion will be invalidated if the coin ends a trading session above $76.

Development activity is increasing despite the downward trend

AAVE shows weakness on charts after rejecting $75

Source: feeling

Long-term investors can take heart in the fact that development activity has not declined despite the downtrend in the price. The surprising factor was the lower supply of AAVE on the exchanges despite the strong downtrend.

Besides flat OBV, the scale suggested token accumulation by major market players. This build-up phase does not necessarily mean that a bottom is around the corner, and AAVE may have seen more losses on its price chart.

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