Aave (AAVE) has been on the decline this year. The coin has had flashes of recovery, but the general trend over the last 5 months has been bearish. Despite this, things could still get worse as AAVE struggles to keep the price above the $100 mark. Here are the key points:
AAVE has managed to stay above the $100 despite increased selling pressure
The coin will however not hold out any longer
A break below $100 could push AAVE to $70 before its next rally
Data Source: TradingView
AAVE price analysis and prediction
The current bearish cycle for AAVE started off at the $260 mark. The coin has shown signs of breaking the trend but overall, the general movement has been downwards. As of now, AAVE has lost nearly 80% of its value in this bear run. However, falling below $100 could present additional downsides for AAVE investors.
In fact, the DeFi token will likely bottom at $70 or even lower should bulls fail to defend the $100 price. However, so far AAVE is holding out. The coin fell briefly below $100 today but has managed to quickly rebound.
If bulls can manage to consolidate above this mark over the next two days, then AAVE could breakout and settle at $115. However, the 50- and 100-day SMAs appear to show a bearish crossover. This makes the idea of holding the $100 very hard. In the end, we expect AAVE to fall in the coming days.
Is it a good time to buy AAVE?
Well, AAVE is of course one of the best crypto assets in the market. It is actually seen as one of the key drivers of DeFi.
But if you are thinking of buying it for short-term returns, this is perhaps not the best time to do so. The downside potential is just so high. It would be better to wait until the coin hits $70 before jumping in.
This post first appeared on: Coinjournal