- Aave retests the support zone at $56.6.
- The past two days saw whales trimming their stablecoin balances to favor Aave.
AAVE broke the past support regions and displayed massive bearish strength within the past few days. Nevertheless, retesting the foothold at $56.6 confirmed that bulls could have secured the territory for possible price recoveries. While publishing this content, AAVE traded near $60.4, gaining approximately 3% within the past day.
The price uptick matched Bitcoin’s break of the obstacle at $16.79 yesterday. Nevertheless, AAVE printed a descending triangle, welcoming chances of breakouts to the downside or upside. Thus, traders should watch these zones.
Will Bearish Persist as AAVE Forms Descending Triangle Setup
Steep downsides saw AAVE erasing gains acquired from mid-October surges. The alternative token climbed toward the $98 high only to plunge to $60 amidst the latest market slump. That translated to losing around 40% of gains accumulated during October sessions.
Moreover, the foothold at $56.6 offered a calm region for bulls amid attempts to climb toward the $67.2 bearish block. Also, the RSI (Relative Strength Index) escaped the oversold area, leading to eased selling momentum.
Bulls regaining complete market dominance would place the nearest targets for longs at the 23.6% Fibonacci mark ($64) before eying the $67.2 order block. Nevertheless, traders should wait for trend-shift confirmation in the upcoming weeks or days.
The CMF (Chaikin Money Flow) read -0.14, meaning the market remained in favor of sellers. Furthermore, AAVE’s descending triangle might witness a bearish break if BTC retains bearish sentiments.
Therefore, risk-averse investors should close long positions whenever the price plummets beneath the support at $56.5. In such developments, traders should consider $43, $49.6, and $53.6 as new supports. The levels could act as short-selling targets, depending on investor risk tolerance.
AAVE Holders See Losses as Whales Resort to Stablecoins
Santiment showed whales resorted to stablecoins since November 9, when the alternative token confirmed continued price declines. While publishing this content, data indicated that whales trimmed their stablecoins balances to favor AAVE.
That could show a positive shift in market cues toward the alternative token. Also, AAVE saw network growth by November 12. Nevertheless, market sentiment change and network growth haven’t ensured holder profits. Near-term AAVE holders only enjoyed gains between November 3 and 7.
Losses emerged after that, with the 30d MVV staying in the negative region. The trading volume plunge amidst soring press time prices might also restrict buying momentum toward the long targets at $64.2 & $67.2. Therefore, traders should monitor BTC sentiment for lucrative decisions.