AAVE slips below a former support zone, here’s how much lower it can go

ambcrypto.com:

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.

At the time of writing, Aave had a market capitalization of $1 billion. The lending platform was among the biggest in the DeFi sector with a TVL of $3.7 billion. The past week saw the token’s social activity soar, but the price did not show a bullish trend in the same period.

Here’s AMBCrypto’s Price Prediction for Aave [AAVE] in 2022

The price charts showed a rather bearish storm brewing behind AAVE. In September, AAVE grappled with the $96 resistance mark. In October, the nemesis was $80. It appeared likely that AAVE could post another leg downward.

Source: TradingView

The support zone at $72 had been held since mid-September. Numerous attempts by the bears to break past this zone were met with a wall of buyers. However, over time this wall began to crack. At the same time, the price was unable to climb past $80. The $81 level of resistance was not beaten, and AAVE had a higher timeframe bearish market structure as well.

The higher timeframe charts suggested that sellers remained dominant. Therefore, it was the bounce back to the $72 zone that traders can look to sell. The Relative Strength Index (RSI) agreed as it stood below neutral 50 to show some bearish momentum. The On-Balance Volume (OBV) has remained flat as well to denote a balance between buying and selling volume.

A retest of $74 would likely be followed by another move lower. $66.3 and $61.5 are important support levels to the south. This bearish idea would be invalidated should the token close a trading session above $76.

Source: Santiment

Long term investors can take heart in the fact that development activity did