AAVE Technical Analysis: Price Likely to Fall Below $310 and $280

Ankita  |  Jun 8, 2021

AAVE is a finance blockchain network that allows its users to lend and borrow cryptocurrencies. Their customers can earn interest on the crypto deposits into a liquidity pool. To take out a loan, borrowers can use their crypto as collateral. The following AAVE technical analysis will predict the price trends for the next two days:

Past Performance

On June 1, 2021, AAVE opened at $382.43. On June 7, 2021, AAVE closed at $365.47. Thus, in the past week, the AAVE price has decreased by approximately 4%. In the last 24 hours, AAVE has traded between $314-$387.

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Day Tomorrow And Ahead

Currently, AAVE is trading at $325.01. The price has decreased from the day’s opening price of $365. Thus, the market seems bearish.

The MACD and signal lines are negative. Moreover, a bearish crossover by the MACD line over the signal line has occurred. Thus, the overall market momentum is bearish. Hence, the price may decline further.

Currently, the RSI indicator is at 23%. It has entered the oversold zone on the hourly chart. Thus, we can see some buying pressure to increase. We have to wait and watch if buying pressures become strong enough to bring about a bearish trend reversal.

The OBV indicator is downward sloping. Thus, selling volumes are higher than buying volumes. High selling activity will exert downward pressure on the AAVE price.

In short, when we look at all three oscillators, we can say that the price may continue to fall. However, we cannot rule out the possibility of a trend reversal.

AAVE Technical Analysis

Currently, the price is below the second Fibonacci pivot point of $329.75. If the bears remain strong till day end, then the price is likely to fall below the first, and second, support levels of $310, and $280, respectively.

The price has tested and fallen below the 38.2% FIB retracement level of $329.75. It may soon fall below the 23.6% FIB retracement level of $310.94. Thereafter, we have to wait and watch if the price retests and breaks out of these levels.

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