AAVE slips to $200: Watch THESE two support levels before any rebound
Key Takeaways
Has the Aave token buyback program helped bolster market confidence?
Whereas it initially noticed a optimistic response on the value charts, the next vary formation curtailed how far bulls might drive costs, and bears had been in management as soon as once more.
What’s the proof supporting a bearish AAVE outlook?
The elevated taker promote quantity in latest weeks and the breakdown from the vary lows confirmed that bulls had been too weak to defend the psychological $200 stage now.
Aave [AAVE], one of many main DeFi protocols, was within the information just lately after approving a $50 million buyback program.
The initiative aimed to repurchase as much as $1.75 million price of AAVE weekly, relying on protocol revenue and different components.
Since Could, when the buyback pilot was launched, 94 million tokens price over $22 million have been purchased. This deflationary mechanic, mixed with the final market power, noticed Aave token costs rally to $385 in August.
Since then, the market has confronted weak point.
The latest Bitcoin [BTC] stoop beneath the important thing help at $108k final on the third of November noticed Aave costs tank. On the time of writing, the $200 psychological stage was being contested by each bulls and bears, however one aspect has the higher hand.
Aave costs to slip one other 15%
The Taker Purchase/Promote Quantity from CoinGlass confirmed that the 24-hour AAVE quantity has not often been taker buy-dominant over the previous month. This meant that the bulls haven’t had the power to drive costs increased as a result of overwhelming promoting strain.
On the time of writing, the Lengthy/Quick Ratio was at 0.918, displaying there was extra taker promote quantity. This implied that costs had been able to fall additional within the quick time period.
Vary breakdown confirms bearish bias
Supply: AAVE/USDT on TradingView
On the day by day chart, the downtrend has persevered for over a month. AAVE continues to put up decrease highs and decrease lows, aligning with the bearish crossover between its 20-day and 50-day transferring averages.
Extra importantly, the value motion since Could revealed a spread formation (white) between $221 and $336.
The latest market volatility noticed AAVE drop beneath the vary low, and the $210-$225 space was now a stern resistance zone.
As issues stand, the value is prone to slide decrease nonetheless. The subsequent help ranges to keep watch over are $170 and $141.
Disclaimer: The data introduced doesn’t represent monetary, funding, buying and selling, or different sorts of recommendation and is solely the author’s opinion
