Will AAVE take a pause near the crucial support mark of $65?

• AAVE token is near the support mark of $65, but showing lack of momentum.
• Buyers are unwinding their longs and not putting efforts.

AAVE token price is showing bearish cues in the last trading sessions. The bulls could not hold momentum, and sellers looked aggressive, resulting in a price drawdown. The crucial range of $65 has to be watched out for investors, and there is a make-or-break level for the token. AAVE needs to bounce from the demand zone to claim the neutral marks near the 20-day EMA while the sellers continue to make short positions. 

AAVE token is now trading below the significant moving averages. Recent price action shows that three black crows price pattern is there, indicating that bears are active on the token and continue to plunge the price. At the same time, buyers are willing to accumulate the coin to attain some pace of action.

When writing, AAVE is trading at $66.3 with an intraday drop of 4.45% showing bear dominance. Moreover, the trading volume was seen with a massive increase of 45%, indicating that investors are active on the token.

AAVE token is facing rejection from the 50-day EMA and showing unwinding moves in the recent week, and bulls are facing a lack of momentum, whereas sellers are gaining strength. The price action showed that the bearish engulfing candle indicates sellers encouragement and trading volume also supporting it. Moreover, the breakdown of the symmetrical triangle pattern showed on the chart. AAVE token needs to trade above $70 to gain strength; below that token is under the hands of sellers. 

Daily Charts Shows Breakdown

The AAVE token looks bearish on the daily charts and shows no strength. The daily candlestick is breaking its previous four-day low of $67, indicating that aggressive selling was witnessed on the token.

What Traditional Indicators Say?

On the 4-hour charts, the AAVE token is trading below the 20 EMA and facing rejection multiple times from its 200-day EMA, showing that bulls were trying to escape the congestion zone but failed. 

The recent price formation shows that the token is near its previous month’s low of $66. This indicates that the token has been underperforming for the last couple of months and has not returned to the investors.

The Relative Strength Index Curve is struggling to bounce from the oversold region. Currently, it is near 30, and buyers are trying to jump and gain neutrality.

The MACD indicator also favors bears, as the bearish crossover is still in impact, and sellers are taking advantage of that.

Conclusion:

AAVE token is breaking the lows, and aggressive selling was witnessed in the past trading sessions.

Technical Levels:

Support Levels: $60 and $57

Resistance Levels: $70 and $77

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.