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$73 Flipped To Resistance Bitcoin May Also Not Rise Above $19.6k
At the time of writing, Aave had a market cap of $1 billion. The lending platform was one of the largest in the DeFi industry with a TVL of $3.7 billion. The past week saw the token’s social activity rise, but the price did not show a bullish trend during the same period.
Here’s AMBCrypto’s Price Prediction for Aave [AAVE] in 2022
The price charts showed a rather bearish storm brewing behind AAVE. In September, AAVE struggled with the $96 resistance point. In October, the nemesis was at $80. It seemed plausible that AAVE could post another leg down.
Buyers were exhausted despite the $66 surge
The $72 support zone has been held since mid-September. Numerous attempts by the bears to break past this zone were met with a wall of buyers. Over time, however, this wall began to crack. At the same time, the price was unable to rise beyond $80. The $81 resistance level was not beaten and AAVE also had a higher bearish market structure over time.
The higher time frame charts suggested that sellers remained dominant. Therefore, it was the return to the $72 zone that traders can try to sell. The Relative Strength Index (RSI) agreed when it was below the neutral 50 to show some bearish momentum. The On-Balance Volume (OBV) has also stayed the same to indicate an equilibrium between buying and selling volume.
A retest of $74 would likely be followed by another move lower. $66.3 and $61.5 are key support levels in the south. This bearish idea would be invalidated if the token closes a trading session above $76.
Development activity rises despite downward trend
Long-term investors can rejoice that development activity has not declined despite the downward trend in price. A surprising factor was the declining supply of AAVE on exchanges despite the strong downward trend.
Together with the flat OBV, the statistic suggested an accumulation of the token by larger market participants. This accumulation phase doesn’t necessarily mean the bottom is near, and AAVE may have seen more losses on its price chart.
This post AAVE Slips Under a Former Support Zone, Here’s How Much Lower It Can Go
was published first on https://ambcrypto.com/aave-slips-below-a-former-support-zone-heres-how-much-lower-it-can-go/