- AAVE is trading around $106 after a 10% drop.
- Daily trading volume has surged by over 58%.
The 5.84% loss has driven the broader market sentiment into the extreme fear zone, as the Fear and Greed Index value settled at 5. The majority of crypto tokens have lit blood-red candles, including the largest assets, BTC and ETH, which hover within the $66.5K and $1.9K, respectively. The bear grip is tightening day by day — will any signs of green break through the red anytime soon?
Meanwhile, AAVE has seen a downside by losing 10.88% in value over the last 24 hours. In the early hours, the asset traded at a high of $122.13, and later, with the bearish encounter, the price slipped toward $94.17. AAVE currently trades at $106.87, and its trading volume has soared by 58.83% to $1.09 billion. As per Coinglass data, a $4.27 million liquidation of AAVE was seen in the market.
While zooming in on the 4-hour bearish price pattern of AAVE, the price could retrace toward the support at the $101 range. With an extended downside correction, the death cross might take place, triggering more downward risk, and the price dropping below $96.31.
Conversely, if the active market sentiment turns bullish, the AAVE price might climb to its nearby resistance at around $111. Further upside pressure could initiate the emergence of the golden cross, and the bulls would likely break out to the next crucial zone at the $116.57 level.
AAVE’s Momentum Fades: Is a Deeper Pullback Brewing?
Both the Moving Average Convergence Divergence (MACD) and signal lines of AAVE are positioned below the zero line, which shows bearish momentum. Also, it is trading below its longer-term trend. Unless they start to shift upward, above zero, the downside bias remains intact.
In addition, the Chaikin Money Flow (CMF) indicator found at -0.07 reflects mild selling pressure in the AAVE market. The money is flowing out of the asset, with buyers being hesitant, while sellers retain near-term control. Notably, it leans to the bearish side, but not excessively.
AAVE’s daily Relative Strength Index (RSI) of 28.30 signals its oversold condition. Significantly, the selling pressure has been intense, and the ongoing momentum remains weak, with the current level raising the probability of a relief bounce if buyers step in.
Moreover, the Bull Bear Power (BBP) reading of -18.35 implies strong bearish dominance. As the sellers are in control, the downtrend outweighs any bullish attempts. Until this value moves closer to zero, bearish momentum will be the prevailing trend.
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Source: https://thenewscrypto.com/10-drop-shakes-aave-are-more-losses-brewing-on-the-downside/
