- AAVE is hovering around $286 after a 4% jump.
- Its technical indicators are showing bearish signals.
The 1.43% spike in the crypto market cap has driven it to $3.28 trillion. Major assets in the market have lit up the green candles, with the Fear and Greed Index settling at 52, reflecting the neutral sentiment. Bitcoin (BTC), the largest asset, is currently trading at around $105.1K, while the largest altcoin, Ethereum (ETH), hovers at the $2.5K range.
Among the altcoins, the AAVE token has jumped by over 4.76% in the last 24 hours. Notably, the asset has broken through its crucial resistance at $279.57 and $290.85, and hit its daily high at the range of $291.21. In the early hours, the asset traded at $277.41, marking its lowest price.
At the time of writing, AAVE trades within the $286.04 range, and its market cap is settled at $4.33 billion. The daily trading volume has dropped by over 1.59%, reaching $783 million. In addition, according to Coinglass data, a $1.36 million liquidation of AAVE was experienced in the market during this timeframe.
Will the Downtrend Deepen for AAVE?
On analyzing AAVE’s four-hour price pattern, a negative momentum lingers in the market. The asset’s price could rally downside toward the $280.20 range. An extended bearish hold might invite the death cross to take place, likely signalling the downward risk, and price dropping to the $269 threshold.
Conversely, assuming the ongoing market sentiment of AAVE turns bullish, the price could find its nearby resistance at around $290.37, and further upside correction might trigger the golden cross to unfold. Upon breaking the next resistance zone at the $300 mark, a new price rally may kickstart.
Moreover, AAVE’s technical indicators exhibit a bearish encounter with the Moving Average Convergence Divergence (MACD) line below the signal line, which generally indicates that the momentum is weakening, and the downtrend may continue. Besides, the Chaikin Money Flow (CMF) indicator found at -0.06 suggests that the money is flowing out of the asset, with selling pressure in the market.
Furthermore, the daily relative strength index (RSI) of 48.65 signals a neutral market condition, with no strong buying or selling pressure. AAVE’s Bull Bear Power (BBP) value, sitting at -4.30, points to a strong bearish momentum in the market, and if it continues, it may confirm a sturdy downtrend.
