The AAVE price has failed to resume the uptrend, and now a worrying lethal cross is increasing the downward pressure. Decentralized finance (DeFi) leader Aave (AAVE) has shifted from critical resistance over the past two days, endangering the recent rally and leaving the token vulnerable to another lower leg.
Confidence returned to cryptocurrencies in October after Fed Chairman Jerome Powell allayed fears of a U.S. ban on digital assets. As a result, the crypto market gained around $ 250 billion in market capitalization to reach $ 2.15 trillion. Additionally, Bitcoin (BTC) is preparing for a decisive break above $ 50,000 which, if successful, could trigger outsized returns in altcoins. However, despite the general positivity, the Aave Price is struggling.
Techniques that deteriorate quickly
After rebounding 30% to $ 325 from last week’s $ 250 low, the price of AAVE has encountered significant overhead support. An uptrend line at $ 330 and the 100-day moving average at $ 328 rejected the rally, pushing the price down to $ 301 this morning. Additionally, the 50 DMA at $ 347 dropped below the 200 DMA at $ 352. Technical analysts call this bearish development a death cross which highlights a growing negative dynamic. The Death Cross adds to the already bearish technical backdrop and may encourage selling. If that turns out to be true, the first line of support was $ 250 last week. Below $ 250, the next major support is $ 216, and then the June low at $ 165.
The bearish technical outlook remains in place until AAVE price recovers trend support above $ 330. In this case, the price should expand towards the 50 and 200 day indicators. Therefore, a close above $ 330 invalidates the immediate negative view.
AAVE price table (daily)
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