AAVE Price struggles to defend $50; Will AAVE crypto take U-turn?

• 1 AAVE Price fell 16% in the previous week and buyers struggled to defend $50.00.
• 2 The AAVE crypto price trading near to the yearly lows.
• 3 AAVE Price Prediction suggests significant rise is possible till $45.00 is sustained.

AAVE Price Prediction suggests significant rise is possible in the coming months if buyers are able to defend $45.00. 

AAVE Price fell 16% in the previous week and attempted to break the $50.00 level. But luckily buyers came forward and closed the session by forming a long shadow. It shows that buyers are active at lower levels and it’s going to be difficult for sellers to pull the price further down. 

AAVE Price is declining by forming lower low swings indicating downtrend. The short term up-moves are not sustaining on higher levels shows bears dominance. 

AAVE Price trading below the 50 and 200 day EMA shows positional as well as short term trend is down. However, the 200 day EMA is sloping sideways denotes, prices might enter into the consolidation. 

The volatility and price fluctuation in AAVE crypto is quite low. Therefore, after a recent downfall the probability of narrow range consolidation is high as compared to sharp up-move or down-move. 

AAVE Price is trading at $52.30 with an intraday rise of 0.19%. The 24 hour volume to market cap ratio is 0.0477. The pair of AAVE/BTC is trading at 0.002013 with an intraday decline of -0.05%.

Is AAVE price in the last stage of correction

AAVE Price looks stable and traded in the narrow range for quite a long period of time. From mid of March to mid of May, AAVE crypto consolidated between $60.00 to $80.00. Investors are bullish for the long term and expecting the range to expand on upside. 

Sadly, AAVE price took the opposite direction and dropped below the lower range which resulted in sharp decline. If the buyers are able to defend the $50.00 and $45.00 demand zone then reversal is possible. Else, the next phase of downfall will begin. 

However, the possibility of consolidation in a range between $45.00 to $60.00 is also high for short term base formation. 

AAVE crypto price near demand zone

AAVE crypto price is near to its demand zone and downfall seems limited. Moreover, if crypto leader BTC price recovers then it may positively impact the sentiment of investors. 

The correlation between AAVE and BTC is 0.74 which is very high. Therefore, if Bitcoin performs then the probability of bounce in AAVE will increase. 

The MACD curve is collapsing down and the histogram bar is expanding down. It indicates bearishness and sell off has just begun. The RSI at 26 slopes down denotes weakness but near to oversold territory due to which downfall may halt for some time. 

Conclusion

AAVE Price Prediction suggests significant rise is possible in the long term. However, In the short term prices seem to be in a bear grip. AAVE crypto is near its demand zone and buyers are trying their best to rebound. 

The technical analysis suggests AAVE price will respect the support and it might take a U-turn. 

Technical levels

Resistance levels: $70.00 and $84.00

Support levels: $50.00 and $45.00

Disclaimer

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