Aave Price (AAVE) Dropped 7% Intraday: How Much Further Could AAVE Decline?
The Aave cryptocurrency price experienced a significant decrease during trading on Tuesday, losing momentum and declining sharply throughout the day. Technical indicators are pointing towards a bearish outlook in the short term, especially below the 50-Day EMA.
Currently, the Aave crypto price is down for the second consecutive day this week, with the risk of further downside. The AAVE/USD pair is showing a bearish outlook below the 20-Day EMA, while the 200-Day EMA has been providing dynamic support for the crypto.
Intraday, the AAVE crypto price dropped significantly, losing approximately 7% of its market capitalization. It is projected to continue dropping. However, there is a possibility of buyers entering the market as the price has reached the 200-Day EMA on the daily chart.
As of the time of writing, the Aave price is at $85.21, marking a 4.43% intraday loss. According to coinmarketcap(dot)com, it currently has a total market capitalization of $15.280 Million and ranks 85th among all cryptocurrencies. The 24-hour trading volume amounts to 14.87 Million, with an intraday rise of 34.07%.
Over the past three months, the AAVE crypto has shown positive performance, delivering a return of over 90% to investors. However, the price has experienced high volatility this year, with bears dominating the trend. It formed a lower high and broke below the 50-Day EMA, indicating weakness in the charts. Consequently, the recent price drop has taken the price back to a two-month low and the 200-Day EMA, where buyers may enter to defend lower levels.
Nonetheless, selling pressure has gained momentum, which may drive the price even lower, breaking below the current market price (CMP). Indicator analysis shows that the AAVE crypto has broken below the short-term EMAs of 20 and 50-Day EMAs, indicating a negative short-term outlook. If it breaks below the 200-Day EMA, it may indicate a reversal.
At the time of writing, the RSI is at 34.18, and the SMA line stands at 46.90. Both lines are below the mean line, which indicates a bearish sentiment in the short term.
Looking ahead to January 2024, analysts have a positive view, suggesting an upside potential of nearly 13.97% that could take the Aave crypto price above the $96.32 mark. However, there is also a bearish view among analysts, hoping for a price drop to the $75.59 level.
For 2024, the most positive price prediction indicates that Aave crypto may reach a high of $130.38 by the end of the year, while less optimistic analysts estimate a price target of $105.69 for the same period.
In the case of a longer-term prediction, by the end of 2025, the most positive view suggests that the price may reach $165.96, indicating an upside potential of 93.35%. Conversely, the most pessimistic view forecasts a price of $125.11 by the end of the financial year 2025.
Disclaimer: The views and opinions stated in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto or stocks carries the risk of financial loss.
Author: Steefan George, a crypto and blockchain enthusiast with extensive knowledge in the market and technology. With a graduate degree in computer science and an MBA in BFSI (Banking, Financial Services, and Insurance), he is a skilled technology writer at The Coin Republic. He is dedicated to educating a billion people about Web3 and believes in writing in a way that anyone can understand the potential and benefits of this revolutionary technology.