With the prolonged bearish momentum, the crypto market has been moving in all possible ways. All major assets have lit up the red candlesticks, losing momentum. The largest asset, Bitcoin (BTC), is trading near $87.7K, and Ethereum (ETH), the largest altcoin, hovers at $2.9K. Turning attention toward the altcoin pack, the AAVE price has slipped by 1.42%.
The asset opened the day trading at a high range of $152.37.With the bearish encounter, the AAVE price has dropped toward the low of $148.66. If the asset continues to lose momentum, the price movement could see more downside correction within the market.
Currently, AAVE trades at $150.19, with the market cap at $2.29 billion. Meanwhile, the trading volume is down by 19.22% to $172.74 million. Additionally, the Ali chart shows AAVE formed a descending flag pattern. It is consolidated in a narrow range. It has recently broken below the lower trend line, and the key support levels are at $149, $142, with a potential target near $130.
Is AAVE Set for Further Downside?
AAVE’s Moving Average Convergence Divergence (MACD) and signal lines are found below the zero line, showing the active bearish momentum. As long as the lines stay below zero, downside risk remains higher. A potential shift occurs only if they start moving back above the zero line.
Significantly, the Chaikin Money Flow (CMF) indicator value at -0.13 reflects the selling pressure in the market. Notably, the capital is flowing out of the asset, and distribution is happening rather than accumulation. If it moves back toward zero, it might ease the selling pressure.
The Bull Bear Power (BBP) reading of -1.40 indicates strong bearish pressure. Notably, it is pushing the price well below as the downside momentum is dominant. Moreover, the daily Relative Strength Index (RSI) of AAVE at 40.79 suggests weak to neutral momentum, which leans slightly to the bearish side. The asset is not oversold yet, but the buying strength remains limited, hinting at consolidation.
The recent trading pattern of the AAVE/USDT pair points to the downside price trajectory. It could fall below the $145.32 support range, and an extended loss would invite the death cross to take place, driving the price toward $140.12. Assuming the AAVE price has changed the gear to bullish, it might climb to the resistance range at $155.78. Further upside pressure could trigger the emergence of the golden cross and likely send the asset’s price above $160.59.
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