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AAVE Under Pressure: Will Altcoin Drop 18%, Reach $290?
Aave [AAVE], a prominent decentralized lending protocol token, is showing signs of vulnerability as bearish sentiment spreads across the market. According to recent on-chain metrics and technical analysis, AAVE appears poised for a significant price decline.
On the daily chart, AAVE has formed a bearish divergence and double-top price action pattern, signaling a potential drop in the near future. This development is concerning, especially considering the asset’s recent price momentum.
At press time, AAVE was trading at approximately $350 after experiencing a 9% price decline over the past day. The trading volume accompanying this decline dropped by an astonishing 28%, indicating reduced participation from traders and investors amid the bearish price action.
Notably, on-chain metrics suggest that exchanges have witnessed a significant inflow of over $5.2 million worth of AAVE. This could be indicative of potential selling pressure, potentially leading to further price decline.
Furthermore, Coinglass reported that a staggering 58.9% of top AAVE traders held short positions at the time of writing. Meanwhile, only 41.10% of these traders were holding long positions. This stark contrast in sentiment can hardly be ignored and adds credence to the bearish outlook for the asset.
Given this information, it is reasonable to predict that AAVE may drop by a substantial 18% and reach the $290 mark in the near future.
Source: ambcrypto.com
