Aave's price has been trapped below all major moving averages, making it challenging for the cryptocurrency to break through resistance levels.
The derivatives market indicates aggressive selling pressure, with takers dumping 9,096 contracts against only 7,658 buying contracts. This type of selling exhaustion often precedes either a capitulation low or further downside acceleration.
Analysts have projected targets ranging from $86 to $120, but the technical picture suggests caution, with indicators such as RSI and MACD histogram indicating indecision and potential downside momentum.
The bull case hinges on Aave reclaiming its resistance at $88.22 and breaking above the 7-day SMA at $86.36. However, the bear case looks more probable given the current technicals, with a break below $83.56 immediate support opening the door to sub-$80 levels.