A 1.9% spike within the crypto market has initiated both red and green waves across the tokens. The largest assets, like Bitcoin (BTC) and Ethereum (ETH), have moved up and, as of now, they are hovering at $90K and $3K, respectively. Turning attention toward the altcoins, the AAVE price has lost by over 10.26%.
In the morning hours, the asset has traded at a high range of $176.99. With the bearish encounter in the AAVE market, the price has retraced toward a bottom of $157.18. If the bears continue to stay stronger, the price movement may steeply fall to the previous lows.
At the time of writing, AAVE trades at around $158.68, with the market cap staying at $2.38 billion. Additionally, the daily trading volume has exploded by over 241%, reaching the $659.47 million zone. Concurrently, a $1.85 million liquidation of AAVE was observed in the market during the last 24 hours.
How Low Can AAVE Momentum Go?
Both the Moving Average Convergence Divergence (MACD) line and the signal line of AAVE are settled below the zero line, which indicates its strong bearish trend. The short-term trend is lagging behind the long-term direction. Significantly, the Chaikin Money Flow (CMF) indicator positioned at -0.17 likely suggests the presence of selling pressure in the market. The money is flowing out of the asset.
The Bull Bear Power (BBP) reading of AAVE at around -22.79 shows a strong bearish dominance. This negative value hints that the sellers are controlling the market. Moreover, the daily Relative Strength Index (RSI) at 23.29 signals that the asset is in the oversold condition. This is a potential buying opportunity or a trend reversal, though it can stay oversold during strong downtrends.
The AAVE/USDT trading pair reports the bearish trajectory, and the price could fall to the support at the $155.47 range. If the downtrend is sustained, the bears may invite the death cross to take place, and drive the price below $152.39. Assuming the asset shifts gear to an uptrend, the AAVE price might go up to the resistance level of $161.75. Further bullish pressure could trigger the emergence of a golden cross, taking the asset to its former highs at around $164.88.
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