Aave has been trending lower since April amid intense market volatility. Major altcoins have extended losses due to a huge selloff across the crypto industry. Over the past week, the coin made lower lows and showed intense selling pressure.
The altcoin has also seen high trading volumes that were linked to increased selling pressure. This has also added to the drop in the asset’s market value on the one-day chart.
The drop from the current price level would mean that Aave could soon eye the $50 support region. Aave has been among the top losers in the industry with a loss of over 51% in the last week.
Aave Price Analysis: One-Day Chart
Aave was priced at $74 on the one-day chart | Source: AAVEUSD on TradingView
Aave was priced at $74.80 at the time of writing. The altcoin traded at this price level a year ago in January. Aave’s downtrend looks strong because the altcoin has just broken below its more than a year-long support line.
Chances of a price reversal cannot yet be ruled out as the altcoin has broken below its downtrend line. Often, after a sharp drop, prices take a turn. In the event of a price revival, Aave could target $111.
Another drop from its current price level would see the altcoin trading near the $61 support line and then hovering around the $50 range. As mentioned above, the trading volume increased and was seen in the red, signifying a downtrend in the market.
Aave posted a strong sell-off on the one-day chart | Source: AAVEUSD on TradingView
Aave was in the midst of a strong sell-off, the coin had not registered the same selling pressure in the past year. This reading shows excessive bearish pressure in the market. In the relative strength index, the indicator stood near the 20 mark, which meant an oversold condition for the coin.
Aave last ranged at this point in the month of December 2020. Bollinger Bands showing volatility showed chances of volatility. The bands expanded, which is an indication of increased price volatility.
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Aave showed bearish momentum on the one-day chart | Source: AAVEUSD on TradingView
Awesome Oscillator represents the price momentum of the market. On the one-day chart, the indicator was seen below the midline. It showed amplified red signal bars, which was a sign of bearish price action. Only in the event that the buyers turn up again, Aave can try to show the recovery on the charts.
The chances of a revival during the immediate trading sessions look dim as the strength of the broader market is required. Chaikin Money Flow shows the inflows and outflows of capital.
On the chart, the indicator was seen below the midline and continued to move south as capital outflows exceeded capital inflows.
Related Reading | Bitcoin Trade Inflows Hit Three-Month High as Market Braces for More Downside
UnSplash Featured Image, Chart from TradingView.com
This post Aave below its long-term support; What to expect now?
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