AAVE Crypto Hits Supply Zone Resistance: Will It Surpass $150?

Aave (AAVE) a leading decentralized finance (DeFi) protocol, has experienced significant profit booking. AAVE crypto price retraced more than 15% this week.

AAVE has found it difficult to cross the $150 mark in the past few weeks and has made a double-top formation. Forming a three black crows pattern, the token has seen a three-day bearish streak and underlined the selling pressure.

Still, the token traded above the key moving averages and looked bullish. Facing significant challenges and increased liquidations, the token was seeking a retracement.

However, AAVE was in a short-term accumulation phase, driving a massive bullish surge in the last two months. Despite the market turbulence, it continued to spread the gains inside a rising channel and witnessed outperformance.

Meanwhile, the $150 mark is the most crucial resistance mark, which bulls failed to flip. Until the barrier is breached, the token may consolidate near the upper Bollinger band.

Looking ahead, the token was heading to revisit the 20-day EMA mark. It could drop toward the $120 mark in the next sessions.

AAVE Crypto Struggles Near Supply Zone: Price Analysis

On the daily chart, AAVE made a double top formation, displaying profit booking throughout the week. It demonstrated a rejection from its supply zone of $150 and lost momentum.

However, the trend is still bullish, and buyers want to gain further traction to beat the mighty bear cartel. Until the $150 mark is breached, a fresh rally is unlikely.

AAVE was trading at $127.36 at press time, it had dropped over 3.20% intraday. Its trading volume soared over 12.29%, representing flat investor participation.

With a market cap of $1.93 Billion, it was ranked at 50 and has a total supply value of 16.24 Million.

The RSI line showed a negative crossover and projected increased selling pressure on the chart. Similarly, the CMF indicator plotted a negative value and slipped below the zero line, conveying the bearish move.

DaanCrypto, in his recent tweet, said that AAVE was consolidating near its supply region and attempting to break its local highs.

$AAVE Some more consolidation and I want to see this attempt to break the yearly/cycle highs.

Clear skies ahead if it can do so. $155 -> $260 would be on the board. https://t.co/JggF6NDQvh pic.twitter.com/r02vVK1Tez

— Daan Crypto Trades (@DaanCrypto) August 26, 2024

Per the Fib retracement levels, AAVE failed to cross the 61.8% resistance zone. It reverted toward the 50% support trajectory near $120.

Development Activity Data Witnessed a Consistent Uptick

The bullish trend in AAVE’s development activity metric reflected a consistent rise, displaying sustained growth in the ecosystem. It showed a vertical rise, noted at 25.52, underlining a positive sentiment.

However, the social dominance data continued to fluctuate, highlighting significant buzz. Noted at 0.267%, it conveyed a rise in investor chatter for the token and heightened online discussions on the media platforms.

Network Growth and Velocity Data Overview

The network growth line observed a massive downtick during the three-day bearish streak. It dropped below the median line, indicating new addresses lost interest.

Likewise, the velocity line showed a downtick at 2.093, indicating a reduced transfer. It conveyed less activity involving AAVE.

Its Futures Open Interest dropped over 10.20% to $126.29 Million, reflecting a long unwinding move in the last 24 hours. If AAVE takes the support at around $125, it might show a pullback. It could aim to sustain above the $135 mark, followed by the resistance mark of $142.

If the token continues the bearish reversal; the token may reach the lower support region of $115. This would be followed by $110 in the near term.

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