Aave (AAVE), a leading decentralized finance (DeFi) protocol, is currently facing resistance at the supply zone. The token has struggled to surpass the $150 mark and has formed a double-top pattern, indicating selling pressure. Despite this, AAVE has been trading above key moving averages and has shown bullish tendencies.
However, the token is in a short-term accumulation phase and may experience a retracement. It is expected to revisit the 20-day exponential moving average and could drop towards the $120 mark in the next sessions.
On the daily chart, AAVE has formed a double top formation and has been rejected from its supply zone of $150. While the trend remains bullish, a fresh rally is unlikely until the $150 mark is breached.
At the time of writing, AAVE is trading at $127.36, with a drop of over 3.20% intraday. The trading volume has increased by 12.29%, indicating flat investor participation.
Technical indicators such as the RSI line and CMF indicator suggest increased selling pressure and a bearish move.
According to DaanCrypto, AAVE is consolidating near its supply region and attempting to break its local highs. If successful, the token could see clear skies ahead with a potential target of $155 to $260.
In terms of development activity, AAVE has witnessed consistent growth, indicating a positive sentiment in the ecosystem. However, social dominance data has fluctuated, suggesting significant buzz and increased discussions about the token online.
Network growth and velocity data show a downtick in new addresses and reduced activity involving AAVE, respectively.
The futures open interest has dropped by over 10.20% to $126.29 million, reflecting a long unwinding move in the last 24 hours. If AAVE finds support around $125, it could show a pullback and aim to sustain above the $135 mark.
If a bearish reversal continues, AAVE may reach the lower support region of $115 and potentially $110 in the near term.