AAVE Faces Risk of Deep Decline
Aave (AAVE) is currently experiencing a significant downtrend, trading below $162, extending last week's 12% correction. On-chain data indicates increasing selling pressure, with several large holders actively offloading their tokens. AAVE's momentum indicators are weakening, suggesting further declines are possible in the near future.
Data reveals that a single whale address recently sold 230,350 AAVE tokens, valued at $37.8 million. This substantial sale has contributed to growing selling pressure on the token.
Additionally, the Network Realized Profit/Loss (NPL) metric indicates that Aave profit-taking has reached its highest level since late November. The NPL surge reflects investors cashing in on profits, further intensifying selling pressure on AAVE in the short term. This widespread profit-taking behavior adds to the bearish sentiment surrounding the token.
AAVE Price Forecast: Bears Control Momentum
AAVE failed to surpass the 50-day EMA at $193.61 earlier this month, subsequently declining more than 18%. Selling pressure remains dominant, with AAVE trading below $161.
- Bearish Scenario: If AAVE continues its downward trajectory and closes below the key weekly support level at $160.51, the correction could extend towards the November 21st low around $147.13.
- Technical Indicators: Reinforcing the bearish outlook, the Relative Strength Index (RSI) is at 36, significantly below the neutral 50 level, indicating increasing downward momentum. The Moving Average Convergence Divergence (MACD) has also displayed a bearish crossover, signaling a persistent negative trend.
- Potential Rebound: Should AAVE experience a rebound, the price could potentially test the daily resistance area around $179.27.
| Indicator | Value | Interpretation |
|---|---|---|
| 50-day EMA | $193.61 | Failed to surpass |
| Key Support | $160.51 | Potential breakdown point |
| RSI | 36 | Increasing downward momentum |
| MACD | Bearish Crossover | Persistent negative trend |
FAQs
Why is AAVE facing a risk of deep decline, and what role do whales accelerate selling play in this?
AAVE is facing a downtrend due to increasing selling pressure, particularly from large holders (whales) offloading their tokens. One whale sold a significant amount, contributing to the decline, and widespread profit-taking is further intensifying the selling pressure.
What key technical indicators suggest AAVE faces risk of deep decline, and where are the potential support levels to watch?
The Relative Strength Index (RSI) at 36 and a bearish Moving Average Convergence Divergence (MACD) crossover indicate increasing downward momentum for AAVE. A key support level to watch is $160.51; a break below this could lead to a further decline towards $147.13.
Besides "whales accelerate selling", what other factors are contributing to the potential AAVE faces risk of deep decline?
Profit-taking, as indicated by the Network Realized Profit/Loss (NPL) metric reaching its highest level since November, is contributing to selling pressure. Also, AAVE's failure to surpass the 50-day EMA at $193.61 earlier this month has reinforced the bearish sentiment.
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