AAVE Crypto: TD Sequential Indicates Drop, But There Is Hope Yet

On AAVE crypto’s weekly chart, the TD Sequential indicator has signaled a sell that could signal for a downward correction.

At press time, AAVE was trading at $287.21 for a 0.58% decline over the last 24 hours, as well as for a 16.22% drop over the last week.

Crypto analyst Ali (@ali_charts) says AAVE could be heading to support levels at $264 and $203.

The $264 figure is in line with the 0.618 Fibonacci retracement level, generally seen as a powerful support area.

This will bring the price that has a deeper correction closer to $203, which is the 0.5 Fibonacci level. Investors are assessing buy zones for these levels.

Long-Term Potential Despite Short-Term Weakness

While a correction appears imminent, analysts believe AAVE crypto’s long-term outlook remains optimistic.

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Michaël van de Poppe, a crypto analyst, has described this phase as an “opportunity building after consolidation.” He added,

“After this correction, old coins like AAVE have a tremendous opportunity.”

AAVE crypto’s all time high (ATH) of $661.69 over 56% higher than current price, and some traders believe that consolidation could lead into a future rally.

Here, we see that range from $240 to $250 as a potential range for accumulation, where resistance is now support.

Should prices dip into this range, many investors are expected to consider entering positions in anticipation of a rebound.

Analysts Predict Key Levels for Investors

Michael also noted that previously support zones near $113 to $115 are still relevant. These could act again as accumulation zones if the market starts to break down at larger levels, said He.

AAVE also needs to break above $297 resistance level to confirm the bullish trend and confirm the bullish trend.

Trading volumes for AAVE crypto continue high, and with over $600 million worth of interest still in play, it seems that there will be a rally as consolidation comes to an end.

AAVE Crypto’s Dominance in DeFi Secures Investor Confidence

The DeFi space is seeing AAVE dominate, making it the leading actors at this point.

According to a recent The Coin Republic report, AAVE has a total value locked (TVL) of somewhere in the region of $20 billion, meaning ahead of competitors like Uniswap V3, Verus Market, JustLend, and Spark.

Although TVLs on these platforms varied from $5 billion to $500 million and below, AAVE crypto has consistently been one of the biggest and strongest players in the entire DeFi ecosystem.

This stable performance does speak to the fact that investors are still confident in AAVE as utility driven token.

Due to the relative stability of AAVE’s TVL and the current market correction, the token is establishing itself as a treasury point of interest for both short and long term traders.