The price of Aave has dropped significantly in the last month after the altcoin fell below the $90 mark. The altcoin consolidated on its chart with a 0.2% loss in the past 24 hours. The altcoin has depreciated by close to 9% in the past week.
The technical outlook for the coin depicted bearish strength on the chart. Demand for the coin dipped, and accumulation continued to fall owing to the altcoin’s decline in value over the past few weeks. This could mean that before Aave starts to recover, the coin could take another plunge over the subsequent trading sessions.
Although the coin exceeded the $80 price, it was still in the woods. Still, Aave needs to start its bullish recovery. Major altcoins remain wobbly as Bitcoin hovers in the $23,000 price zone, and a lot depends on how the king coin behaves over the subsequent trading sessions.
Aave Subsequent Analysis: One-Day Chart
The altcoin was trading at $81 at the time of writing. Aave is trading in a wide range that has stretched between $76 and $92 over the past few weeks. The middle point of the range is where Aave stands at the moment. Aave is trading close to its support line of $77.
The next trading sessions remain crucial, as they could decide the altcoin’s next course of movement. The resistance to the coin stood at $86.
If the altcoin breaches the resistance above, a bullish recovery will be on the way. The amount of Aave traded in the last session was red, indicating increased selling pressure.
Technical Analysis
The buying pressure has remained low since the beginning of February as Aave could not manage to turn the price around. The Relative Strength Index was below the 50-mark, indicating an increased number of sellers compared to buyers. The daily chart also paints a bearish signal.
The price of Aave fell below the 20-Simple Moving Average line (SMA), which implied that sellers were driving the price momentum in the market.
Additionally, Aave formed a death cross, with the 200-SMA (green) crossing over the 50-SMA (yellow), which suggests bearishness. The price could fall over the upcoming trading sessions before it starts to recover.
Following the death cross, Aave also displayed sell signals. The Moving Average Convergence Divergence indicated the price momentum and formed red signal bars that were increasing in size. These histograms were tied to sell signals.
