Is the bearish trend for AAVE set to continue? This is the question that has been plaguing crypto investors in recent times. AAVE, a popular cryptocurrency, has seen a significant bearish swing, breaking through a critical support level and indicating a continuation of the bearish trend. With the crypto market’s turbulence showing no signs of abating, many are wondering what lies ahead for AAVE.
AAVE’s Bearish Swing
The bearish trend for AAVE has extended, with the crypto breaking through a crucial support level. This move has been accompanied by a dip in Open Interest, suggesting a continuation of the bearish trend. Over the last 48 hours, AAVE’s price has dropped by 17%, reaching the June lows of $47 – $51.
As Bitcoin [BTC] continues to trade below $26k, altcoins, including AAVE, are experiencing significant price drops. If BTC’s price continues to dwindle, AAVE could potentially retreat even further as sellers seek more ground.
Bearish Momentum Gains Ground
AAVE’s market structure turned bearish on the 12-hour timeframe after sellers broke through the bullish lower at the beginning of August. Despite the best efforts of buyers, sellers have capitalized on the bearish market over the past 48 hours, breaking below the support and extending the bearish momentum.
The Relative Strength Index (RSI) dipping into the oversold zone further illustrates the lack of bullish strength. Similarly, the Chaikin Money Flow’s (CMF) reading of -0.16 indicates significant capital outflows, suggesting capital preservation moves.
Continued Bearish Bias
The sharp drop in Open Interest (OI) between August 17 and 18 shows a waning demand for AAVE in the futures market. This decrease in price and open interest suggests a continuation of the bearish trend. As on-chain metrics continue to dip, it seems more downside could be imminent for AAVE before a price reversal occurs.
Investors and traders who want to keep a close eye on these developments can use platforms like cryptoview.io to monitor market trends and make informed decisions.
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