Aave Declines, Vitals Levels To Keep An Eye On

Aave

Aave Price noted a fresh decline on the daily chart as the coin slipped below the $80 price zone. Over the last 24 hours, the altcoin traveled south and lost 4.2% of its value. As anticipated, after the altcoin formed a death cross, where the long-term moving average crossed (200-Simple Moving Average) above the short-term moving average (50-Simple Moving Average), the altcoin registered another significant fall in price.

The technical outlook also maintained bearishness on the daily chart. Buyers lost confidence after the coin failed to stay above the $80 mark, so demand did not rise. Another push from the sellers and the bears will be entirely back.

The bulls could take charge even now if the altcoin moved above the immediate price ceiling. Broader market weakness might not let the major altcoins secure gains on their respective charts. The altcoin will continue to lose value on the daily chart if the price doesn’t manage to stop receding from the $78 mark.

Aave Price Analysis: One-Day Chart

Aave was priced at $79.40 on the one-day chart | Source: AAVEUSD on TradingView

The altcoin fell from the $80 mark and was exchanging hands at $79.40 at the time of writing. Aave was close to its support level of $78. Falling below that level will cause Aave to park at $74 and then at $64. Aave’s two crucial price floors stood at $78 and $64.

The overhead resistance for Aave was $82 and then $89. If the altcoin breaches the $89 mark, the bulls will take over the market’s price action. The amount of Aave traded in the last session was red after the coin noted a fall in buying strength.

Technical Analysis

Aave registered low buying pressure on the one-day chart | Source: AAVEUSD on TradingView

The Relative Strength Index slipped below the half-line to demonstrate bearishness in consonance. The presence of buyers was lower than that of sellers, according to the indicator. Buyers seemed to have lost confidence in the asset as Aave continued to trade in a range over the past two months.

Aave price also fell below the 20-Simple Moving Average (SMA) line. This reading meant that sellers were driving the price momentum in the market. Only if Aave toppled over the $80 mark would the price of the asset move above the 20-SMA line, which would then start a recovery for the altcoin.

Aave displayed sell signals on the one-day chart | Source: AAVEUSD on TradingView

At press time, the altcoin also formed sell signals, meaning the price could dip again soon. The Moving Average Convergence Divergence depicted red histograms underneath the neutral line indicating that traders could sell the asset. The indicator reads price momentum and trend reversals.

The Chaikin Money Flow measures the number of capital inflows and outflows. The indicator remained above the zero line, implying that the capital inflows were still greater than outflows. The bears will remain in control of the price unless the altcoin takes its price above the 20-SMA line.

Featured Image From UnSplash, Charts From TradingView.com
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