-
Aave is one of the largest DeFi platforms
-
The token has been gaining as cryptocurrencies rose on hopes of DeFi recoveries.
-
AAVE token has breached a support zone and eyes new lows in a market correction
Aave AAVE/USD is one of the cryptocurrencies to stage recoveries in the recent crypto surge. The cryptocurrency traded at a low of $53 at the beginning of July. It almost doubled in value to a price of $102 on July 19. The token currently trades at $85 as most cryptocurrencies edge lower.
Aave gained on renewed hopes of the growth of DeFi. The platform is already one of the largest in the decentralized lending and borrowing sector. Aave also lets users earn passive income through staking the token. That has the potential to attract users and facilitate the growth of the DeFi platform.
The latest above-market returns for AAVE underline trust in the platform and the utility of its token. However, the token now faces a decline, and investors should watch key levels.
AAVE set to correct more as price slides below $86 support
Source – TradingView
In the shorter 4-hour time frame, AAVE is bearish. The MACD line crossed below the moving average as the token slipped below $86 support. The 14-day and 21-day moving averages remain above the price and offer resistance.
From the technical outlook, AAVE will continue to slide unless it reclaims the $86 support. There is currently no bull trigger, while crypto sentiment remains weak. We expect the cryptocurrency to fall and find support at $75. If the level fails to hold, the next support zone for AAVE is $68. Short-term focused investors should sell now to buy lower.
Summary
AAVE remains under bear pressure after the recent gains. The cryptocurrency has broken below $86 support. The token could find support at $75 or potentially at $68.