AAVE Technical Analysis: Will AAVE Plunge To $48 This Year?

The AAVE price action displays a bullish failure to rise above the 100-day EMA leading to a price dump below the $76 mark. Moreover, the ongoing retest phase forecasts a prolonged correction in the coming weeks, potentially testing the $48 support level. So, will the prices fall by 35% to $48, or will the buyers sabotage the retest phase?

Key Points:

Source-Tradingview

AAVE Technical Analysis

The AAVE price displays a bullish failure to prolong the consolidation range between the $76 and the 50-day EMA in the daily chart. With the fakeout of the 50-day EMA, the prices take a bearish turnaround from the 100-day EMA resulting in the breakdown of the consolidation range. 

Moreover, the price action displays a Head and Shoulder breakout, with the neckline coinciding at the $76 support level, forecasting a high momentum bearish trend.

As the bearish influence grows over the daily chart, the crucial daily EMAs restart the falling trend indicating an increase in the underlying bearishness. 

If the selling pressure persists, the $77.6 breakdown could slump the AAVE price 25% down to $55.7.

However, a high volume of activity during the retest phase suggests a possible fakeout. If this theory works out, the prices may jump above $77.6 and extend the prevailing consolidation. 

Technical Indicator

The downsloping RSI reflects a bearish reign spreading over the AAVE coin. Moreover, a sufficient gap between the MACD and signal lines indicates sustained selling activity in the market. 

Therefore, as the selling activities surge, the technical indicators support the bearish thesis. As a result, the AAVE technical analysis offers a bearish entry opportunity. 

Resistance levels- $76 and $115

Support levels-  $60 and $48