Evaluating Whether AAVE Would See Another Plunge Before Next Rally

AAVE remained on the southbound moves while printing another reversal setup on its daily chart. The 50 Exponential Moving Average has curbed buying surges as it kept the overall trends under the bearish influence.

The prevailing upward-channel trajectory might reignite the selling momentum in the upcoming sessions. While publishing this content, AAVE traded near $67,326, losing 11.65% over the past 24 hours.

AAVE Daily Timeframe

AAVE plummeted beneath the 20 Exponential Moving Average on the daily chart soon after hiking beyond the 3-month trend-line resistance. Meanwhile, a breakdown from its previous bearish flag welcomed a 57% slump within the following 11 days. That saw AAVE nosediving to 19-month lows on June 18.

Since then, AAVE has had its price action hovering near the POC (Point of Control). Moreover, the latest pattern’s resurge bolstered the alt to secure a position beyond the Bollinger Bands’ basis line. Reversals from this mark might help buyers to stretch the upward channel oscillation.

A plunge beneath the upward channel might expose AAVE to more downside. Those scenarios would have possible targets at $51 – $53 near the Point of Control. Buyers should protect the POC territory to prevent aggravated slumps.


The Relative Strength Index’s (RSI) higher troughs showed selling momentum ease. However, the index should secure a massive closing beyond the equilibrium to avoid devaluations on the price chart.

Moreover, the VO (Volume Oscillator) recorded lower peaks within the past few weeks. That had it confirming a bearish divergence with AAVE prices. Nevertheless, the ADX flashed a weak directional bias for the alternative token.

Final Thought

Considering the prevailing ascending channel pattern, AAVE might witness a squeeze phase around the Point of Control. Price targets would stay as mentioned above. Furthermore, AAVE has a 40% monthly correlation with BTC. Therefore, enthusiasts should watch the bellwether crypto to ensure profitable bets.

Bears dominated the crypto market today. Bitcoin could not hold above $20K, changing hands at $19,483 during this publication. Moreover, the global cryptocurrency market capitalization lost 2.07% within the last day to $870.88 billion. Such readings support AAVE’s bearish outlook.

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