AAVE Price Analysis : $95 Breakdown Rease 25% Fall In AAVE Price

On May 12th, the AAVE/USDT pair rebounded from the new lower low of $65.5 and reverted to the descending trendline. This pullback gives trade opportunities to short-sellers with a target of 25% down to $65.5. However, can they provide a legit breakdown from $65.5?

Key points:

• The AAVE price plans another reversal from the falling trendline
• The AAVE buyers regain the first line of EMA defense-20 DMA
• The intraday trading volume in AAVE/USD is $387 Million, indicating a 94% gain

Source- Tradingview

Under the influence of a descending trendline, the AAVE price has been gradually falling for nearly two months. During this phase, the altcoin turned down from the high of $250 and plunged to a low of $65.5 mark, registering a 74.4% loss.

Furthermore, the recent bullish pullback from $65.5 support surged the AAVE price 64% higher and retested the overhead resistance again. Moreover, the altcoin even breached an immediate resistance of $94.3, which may encourage buyers to breach the overhead resistance.

However, the AAVE struggles between the dynamic resistance and the new flipped support suggest an uncertain no trading zone.

A bullish breakout from the above resistance would drive the altcoin 160% higher to $250.

Alternatively, a breakdown from the $94.3 support would tumble the price 25% lower to the $65.5 mark.

Technical indicator

ADX indicator: A slight pullback in the daily-ADX slope indicates a loss of bearish momentum during the recent pullback to the resistance trendline. However, If the sellers successfully pull the coin price below $94.6 support, the ADX may rise back to accentuate the seller’s commitment. 

Bollinger band: Along with the descending trendline, the midline of the Bollinger band indicator provides a dynamic resistance. Moreover, a failed attempt to reclaim this resistance could bolster the bearish theory. 

• Resistance levels: $115 and $137
• Support levels: $96 and $80