Aave (AAVE) has been decreasing since May 18 but only recently broke down below the $315 horizontal support area.
While it has bounced at the $164 horizontal support level, technical indicators are firmly bearish, failing to confirm the possibility of a bullish reversal.
SponsoredLong-term breakdown
AAVE has been moving downwards since May 18, when it reached an all-time high price of $668. On May 23, it bounced above the horizontal $315 support area, doing so for the fourth time since February (green icons).
However, the upward movement was short-lived, and the token broke down from the area on June 11. After validating it as resistance, it resumed its downward movement and reached a low of $170 on June 22. The low was made very close to the 0.786 Fib retracement support level at $164.
Technical indicators are firmly bearish. The MACD is negative and decreasing, while the RSI is below 50 and decreasing. The Stochastic oscillator has made a bearish cross (red icon) and is moving downwards.
Therefore, while consolidation between these two horizontal levels could transpire, it is likely that the trend is bearish.
Cryptocurrency trader @PostyXBT outlined an AAVE chart, stating that the loss of the $315 area is a major bearish development. As seen above, the token has decreased towards the next support level as a result of the breakdown.
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AAVE/BTC
Unlike its USD counterpart, AAVE/BTC has yet to break down from its horizontal support level at ₿0.006. However, it has created a long-term double top pattern that has been combined with bearish divergence.
Currently, it is barely managing to hold on above the horizontal support level. Similarly to the USD pair, technical indicators are bearish. The MACD, RSI & Stochastic oscillator are all decreasing. The MACD is below 0, the RSI is below 50 and the Stochastic oscillator has made a bearish cross.
If AAVE breaks down, the next support would be at ₿0.0027.
For BeInCrypto’s latest bitcoin (BTC) analysis, click here.
