The AAVE technical analysis highlights the underlying declining trend in the market as prices are pulled down below $55 by the bearish momentum caused by high selling pressure.

Breaking below the psychologically important mark of $55, AAVE price actions show bearish momentum due to a lack of interest among the buyers. AAVE has been struggling to recover from the recent crypto crash which accounted for a drop of 38.2% in the last 14 days. Currently trading at $53.56 as of writing, AAVE plunged by 4.56% during the last 24 hours with a 24-high of $57.50. The 11.43% drop in trading volume to $94.79 million and the 4% decline in market cap to $800.17 million strongly support the bearish sentiment in the market. 
<h3>Key Points</h3>
<ul>
 	<li style="font-weight: 400">With a 2.1% drop during early trading hours, AAVE price action shows a strong downtrend</li>
 	<li style="font-weight: 400">Descending triangle pattern shows an upcoming bearish trend</li>
 	<li style="font-weight: 400">The intraday trading volume in AAVE is $94.79 million, registering an 11.43% drop</li>
</ul>
<img src="https://s3.tradingview.com/snapshots/n/Ndp05jQ7.png" alt="TradingView Chart" />Source: <a href="https://www.tradingview.com/x/Ndp05jQ7/" target="_blank" rel="nofollow noopener">Tradingview</a>
<h2>AAVE Technical Analysis</h2>
AAVE prices steeply dived from 78.60% Fib replacement level to below 23.60% reflecting strong bearish momentum as buyers struggled to pull the prices above the crucial mark of $55. A sharp decline from the 200-day SMA also supports a prolonged downtrend caused by selling pressure in the market. Although AAVE pulled back from $53.55 while making a double bottom, it could not convert the upswing into a bullish reversal. Moreover, the descending triangle pattern made by the trendline reaffirms the deep trouble in the market. If AAVE breaks above $55, there would be entry opportunities for sideline traders. But, if prices approach the $50 support level there could be further turbulence in the market. 
<h2>Technical Indicators</h2>
Making a bearish divergence, RSI dived down below the 14-day SMA indicating a downswing at 40.79, showing a lack of interest among buyers. After witnessing a brief upswing MACD also plunged below the halfway line under the signal line on an increasingly bearish histogram. 

The technical indicators exhibit there is a lack of uptrend despite a couple of brief bullish spells as AAVE could not maintain the reversal cycle due to high selling pressure in the market, with the trendline making a descending triangle pattern.

AAVE Technical Analysis: Descending Triangle Warns Downfall Under $50

Sanjay Shukla is a Content Writer with Cryptoknowmics, India's biggest media platform in crypto. He has more than 8 years of experience in the Business and Finance domains. Sanjay writes excellent content on cryptocurrencies, trading, Bitcoin, and the share market, to help the readers have deep insight into the topic.

AAVE Technical Analysis: Descending Triangle Warns Downfall Under $50

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