Aave price analysis: an AAVE downtrend could extend to $200

The antagonistic sentiment associated with China's crackdown connected crypto has affected the marketplace outlook of astir altcoins

Aave's terms is hovering adjacent $276 astatine the clip of writing, with intraday enactment seeing bulls question caller momentum with a 3% uptick successful aboriginal Wednesday deals. The insignificant alteration successful terms question comes arsenic the broader marketplace looks to stem wide downward unit that saw Bitcoin trial enactment astir $42,000.

The altcoin marketplace is showing resilience though and aggressiveness from the bulls could spot Aave bounce alongside large alts similar Ethereum, Cardano and Solana. The 3 coins are showing signs of a short-term affirmative flip aft retesting cardinal enactment areas astir $2,900, $2.10 and $138, respectively

AAVE terms outlook

The AAVE/USD brace has bounced disconnected lows of $256 arsenic buyers people caller momentum pursuing the diminution from highs of $415 reached connected 16 September. The method outlook is, however, somewhat successful favour of bears arsenic seen connected the regular chart.

The breakdown from an ascending triangle signifier looks to person invalidated the bullish presumption successful spot earlier this week's marketplace downturn. There's a hint of a carnivore emblem formation, a signifier apt to awesome bearish continuation.

We besides person the 50 SMA and 100 SMA curves indicating the imaginable for the correction to propulsion prices lower. The position beneath volition fortify further if the RSI makes a caller debased beneath the equilibrium point.

AAVE/USD regular chart. Source: TradingView

If this script plays out, caller losses towards $250 volition unfastened up AAVE/USD to further rot to $212 and past the intelligence enactment astatine $200. The adjacent main request portion beneath this portion is astir $150.

On the upside, AAVE volition apt question a regular adjacent supra $295, an country apt to contiguous immoderate flimsy resistance. If this portion is established arsenic enactment implicit the adjacent 2 candles, bulls tin people further gains supra the 100 SMA ($322), with caller objectives putting the 50 SMA ($360) level into focus.