Aave drops below $200: Traders, watch out for THESE levels next

Crypto News

Aave exhibits a positive weekly trend, yet further declines are likely in the days ahead.
A drop beneath the important $200 mark could potentially push prices down to $141.

Aave [AAVE] has substantially
outperformed other
defi assets,achieving a 465% increase from July to December before starting to pull back. This retracement phase has led to lower prices as overall market sentiment deteriorated.

Bulls looking to acquire more
AAVE should monitor the $141 adn $177 levels while waiting for a range formation.

In the near term, heightened volatility is expected. A price shift towards $216 as part of a liquidity hunt may occur in the coming hours.

Table of Contents

Crypto NewsAave on the brink of losing its $200 support level?

Source: AAV E/USD T on TradingView

In recent months,A ave has sharply reversed its Q4 gains from last year. It has relinquished support at both$284 and$235 and is nearing a fall below$196 as well.

To the downside,$177 and$141 represent key support levels were bulls might establish their position. The swing structure on the weekly chart remains bullish; however,the current retracement could extend downwards towards$125-$141.

The accumulation Distribution (A/D) indicator indicates that selling pressure hasn’t wholly negated buying volume in recent months.The Awesome Oscillator signaled momentum changes around mid-January.

<img title = "Cry pt o N ews"A ave1-dayC hart'decoding = "async"'aria-des cribedby ="capt ion-att achment-"470106"class ="wp-image-"470106 size-full'alt ="Cry pt o N ews"A ave1-dayC hart'w idth=18359height=899'srcset=https :// amb crypto .com/w pc ontent/u ploads/'25'/P P-'A AVE'-daily.pn g18359,'h ttps:/ am bcrypto.c om/w pc o ntent/upl oads/'25'/P P-'AV E'-dai ly–300 x147.p n g300 w,'h ttps:/ am bcrypto.c om/w pc o ntent/upl oads/'25'/P P-'AV E'-dai ly–10 x502.p n g10 w,'h ttps:/ am bcrypto.c om/w pc o ntent/upl oads/'25'/P P-'AV E'-dai ly–7 x376.p n g7 w,'h ttps:/ am bcrypto.c om/w pc ont ent/upload s/'20 '/ PP '-D AI LY '-15 X753.PN G15 X753.PN G15X753.PN G15X753.PN G15X753.PN G150W'SRCSET=(max-width:'18359')100VW ,'18359PX'SRCSET=(max-width:'18359')100VW ,'18359PX'SRCSET=(max-width:'18359')100VW ,'18…

Source:AAV E/USD T on TradingView’‘‘‘‘

The daily chart provided more actionable insights for traders. The structure appeared distinctly bearish; however,recent trading volumes have been subdued.

Consequently,the Accumulation Distribution (AD) indicator remained close to January’s peak.

On another note,the Awesome oscillator indicated clear bearish momentum.The levels of$196,$171,and$155 served as potential support points where reversals might take place.

Investors in Aave can look for range formations before considering purchases,since this may signal consolidation following pullbacks.

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In theshort term,$192and216are noteworthy levels.They have seen an accumulation of liquidation points develop overthe past day.

The two-dayand three-day liquidation heatmaps also emphasize this areaas thenearest liquidity cluster above with another significant one at270.

Volatility was increasing at press time,and prices were generally drawn toward liquidity.Hence,traders should be cautious about an approximate12% jump in Aave’s price up to216to capture liquidity before any downward movement resumes.

The provided data does not constitute financial advice or recommendations regarding investments or trading strategies; it solely reflectsthe author’s outlook.

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