Aave Plummets to Three-Week Low Amid Intense Selling Pressure

Aave (AAVE) has been experiencing a significant downturn in recent days, breaching the crucial $100 support level and plummeting to a three-week low of $96. This sharp decline can be attributed to intense selling pressure, with bears firmly in control of the market.

According to data from CryptoQuant, exchange activities have shown that 79k AAVE tokens flowed into exchanges, compared to 74k flowing out. This indicates a strong dominance of sellers over buyers, further exacerbated by the altcoin's Exchange Supply Ratio (ESR) jumping to a monthly high of 0.137.

The Relative Strength Index (RSI) has also fallen to bearish territory, suggesting that the downward momentum is likely to continue. With the RSI nearing oversold levels, it is possible that AAVE may slide towards $92 before attempting another leg up.