<em><strong>The AAVE price shows a correction in the ongoing bullish trend within a rising channel pattern teasing a drop below the 100-day SMA.</strong></em>
<h3>Key Technical Points:</h3>
<ul>
 	<li>The AAVE (AAVE) price action shows a bear cycle within the rising channel, taking support at the 100-day SMA.</li>
 	<li>The bear cycle cracks under the psychological mark of $100, teasing a downtrend continuation.</li>
 	<li>With a market cap of $1.341 billion, the intraday trading volume of AAVE has dropped by 2.84% to reach $222 million.</li>
</ul>
<h3>Past Performance of AAVE</h3>
As predicted in our <a href="https://www.cryptoknowmics.com/news/aave-technical-analysis-is-aave-ready-to-cross-above-100" target="_blank" rel="noopener">previous article</a>, the AAVE prices exceed the psychological mark of $100, resulting in the breakout of the 100-day SMA. However, the higher price rejection above $100 results in an early bearish reversal before reaching the resistance trendline. Currently, the downtrend breaks under $100 but takes support at the 100-day SMA, avoiding a high momentum downfall. The ongoing bear cycle accounts for an 8% price drop in the last six days, but the recent lower price rejection teases an uptrend continuation.

<img src="https://s3.tradingview.com/snapshots/p/p2ht5ZPf.png" alt="TradingView Chart" />

Source - <a href="https://www.tradingview.com/x/p2ht5ZPf/" target="_blank" rel="nofollow noopener">Tradingview</a>
<h2>AAVE Technical Analysis</h2>
The bullish trend possibility increases as the AAVE price avoids a drop below $90 with significant low price rejection. However, the traders must wait for the market price to break above $100 before taking a bullish trade.

With the prices taking a diagonal shift at the 100-day SMA, the bullish influence over the 50-day SMA increases, resulting in a positive turnaround. Hence with a bullish reversal in the market price, we can expect a bullish crossover of the 50 and 100-day SMA.

The RSI slope maintains a sideways shift in the nearly overbought zone, reflecting a lack of trend momentum. Moreover, the MACD indicator displays the fast and slow lines most in the positive territory giving no specific signal.

In summary, the AAVE technical analysis displays a bullish reversal possibility as the 100-day SMA avoids a downfall.
<h3>Upcoming Trend</h3>
If the demand for the AAVE prices increases, the bullish trend might reach the resistance trend line near the supply zone of $115.

Conversely, a downfall below the 100-day SMA will test the support trendline close to the $85 mark.

Resistance Levels: $100 and $115

Support Levels: $90 and $85

AAVE Technical Analysis: Will AAVE Prices Sustain Above 100-day SMA?

The AAVE technical analysis shows a correction in the ongoing bullish trend within a rising channel pattern teasing a drop below the 100-day SMA.

Vikram is a technical analyst with several years of experience in the crypto market &amp; Indian Equity and F&amp;O Segment. He loves to learn anything and everything related to finance. He possesses strong technical and analytical skills, which he leverages to acquaint our audience with upcoming price trends for different coins.

AAVE Technical Analysis: Will AAVE Prices Sustain Above 100-day SMA?

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