- The AAVE token lost its crucial support of $100 and is still falling ruthlessly. The price slumped 22 percent in a week.
- The bulls need to support. The technical indicators suggest a bearish rally further.
- The AAVE/BTC pair is at 0.003227 BTC with a loss of 2.58% in it.
Aave is a decentralized finance protocol that allows people to lend and borrow crypto. Lenders earn interest by depositing digital assets into specially created liquidity pools, borrowers can then use their crypto as collateral to take out a flash loan using this liquidity. Aave has several unique points when compared with competitors in an increasingly crowded market.
The AAVE token is currently suffering a bearish rally over the daily chart. The coin needs to attract the buyers as soon as possible because now it is very late as the token lost its crucial support of $100. The bears are dominating the market and investors are waiting for the direction of recovery to enter the market. The price made a higher high of $103 over the last intraday trading session.
The current price for one AAVE token is trading at 98.05 with a loss of 0.81% in its market capitalization in the last 24 hrs. The coin has a volume of 160 million which is at a loss of 11.01 in the 24 hrs trading session and a market cap of 1.3 billion. The volume market cap ratio for AAVE is 0.118.
Reason Behind the Tokens’ Price Drop
The token is falling continuously under the bearish influence over the daily and hourly and lost its crucial support of $100. The bulls need to come forward in support of the ecosystem to prevent a collapse. The reason behind the downfall is the decline in the trading volume and the increasing selling pressure.
The statement is supported by the relative strength index indicator showing a clear increase in the selling of the token. The RSI value is currently below 45.
The MACD indicator is also going to show us a negative crossover soon as the green histograms are declining with the decreasing gap between the MACD and MACD signal line.
Conclusion
The AAVE token is currently suffering a bearish rally over the daily and hourly chart. The coin needs to attract the buyers as soon as possible as the token lost its crucial support of $100. The bulls need to support the ecosystem as the technical indicators are indicating a bearish rally further. If the same trend continues the token may collapse which can book a huge loss for the AAVE investors.
Technical levels
Resistance levels: $100 and $105
Support levels: $95 and $90
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish the financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
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Source: https://www.thecoinrepublic.com/2022/06/16/aave-price-analysis-bulls-need-to-put-a-break-the-token-lost-its-crucial-support-of-100/