The AAVE is trying to recover after a sharp bearish decline in the past seven days to a pre-2021 low. The cryptocurrency has fallen to $65.8 a few hours ago as bears escalated their attacks.
AAVE recovered to $71.6 at the time of writing, a significant recovery from its current 24-hour low. The last time AAVE traded within its current price range was December 2020.
It has been significantly bearish over the past 7 days due to volatile, FUD-filled market conditions. Despite a slight recovery from its recent lows, the AAVE is still down around 54% over the past 7 days and is down 72% from its latest regional high on April 1.
Will AAVE sustain a bullish recovery or yield in favor of bears?
AAVE’s price movement is currently flashing several bullish signs. For example, it is currently within the bearish support level that has been tested several times since December of last year. A bullish rebound is very likely despite the current cross below the support level.
AAVE’s RSI is currently deep in oversold territory where buyers are starting to build up. A healthy buildup is now coming from lows, but the MFI indicator has not yet marked an uptrend. AAVE’s DMI still has strong bearish momentum, which translates into a potentially extended bearish performance.
AAVE’s price charts and indicators still suggest significant uncertainty, which is resonating with the general sentiment in the cryptocurrency market. However, the near-term potential for a recovery above $100 is significant. However, this is subject to emotional shifts in favor of the bulls and a healthy build-up from the current lows.
AAVE’s on-chain metrics highlight current benevolent activity. For example, the number of active addresses has increased over the past few days. Exchange outflows have increased noticeably in the past two days, and now outweigh exchange inflows.
Considering oversold conditions, a rebound from support, and an exchange outflow, it’s easy to see why we can conclude that AAVE is currently in a position to recover quickly. However, we are still in a risk-taking market. Another large sell-off may occur before the weekend or on the weekend. AAVE is nonetheless heavily discounted, so a rally is scheduled.