AAVE Price broke MAJOR support level – Should you SELL AAVE?

Aave is a DeFi protocol on the Ethereum, Avalanche, and Polygon network. The cryptocurrency “AAVE” is the native token of the project. While most altcoins crashed hard with the recent crypto crash, AAVE was no different. But how could the Aave price continue in the near future after it too was not spared from the crypto crash? In this AAVE price prediction, we’re going to see why holding AAVE might not be a good idea at the moment.

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AAVE Price Broke its MAJOR Support Level

Aave price formed a descending triangle a few weeks ago. This triangle had support of around $172.4. Having broken the $172.4 support during last week’s crypto crash, we now expect a confirmed breakout. As a result, the Aave price could drop a little more in the near future than it has already done.

Not all cryptocurrencies broke their support areas, or at least had fakeouts. For the case of AAVE, and looking at figure 1, we can clearly see how prices have been lower than $170 for the past 2 weeks now. That’s why it is very important to zoom out and see the bigger picture when analyzing crypto prices. Zooming out to the weekly chart showed 2 candles below the support level, which is why the breakout was confirmed.

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Will AAVE Prices sink lower? Where to Next?

With the Aave price having a trend line that is pushing the price further down, the bears are constantly pressuring the bulls. With the next support around $95.5, we expect the drop to this level to continue. After that, there might be a small move up to the trend line. A descending triangle could also form from this, which is why we again assume that the price will fall below $95.5. The goal is around $50.

Naturally, this analysis assumes everything else is constant. This means that the crypto market continues its bearish trend, no major news in the AAVE community, and a selling pressure higher than a bullish sentiment. If you currently hold AAVE, it might be a good idea to liquidate and wait for the above-mentioned areas to reach. If the market bounces back earlier, the loss would be minimal compared to simply hodling.