The Aave (AAVE) market is now displaying indicators of exhaustion after a formidable worth rally earlier in August. Following a powerful rejection on the $335 worth area, the DeFi token is exhibiting vital hawkish potential as mirrored by a 12.03% decline prior to now 48 hours. Apparently, famend market analyst Ali Martinez shares some potential draw back targets derived from an rising bearish sample.
AAVE Faces Double-High Danger: $230 Goal Looms If Key Helps Fail
In an X submit on August 16, Martinez supplies a technical outlook on the AAVE market, noting the formation of a double high sample, i.e., a basic bearish candle formation that emerges when an asset rallies twice to an analogous resistance zone however fails to determine a breakout, adopted by a breakdown beneath the neckline help to kind a “M” form.
Wanting on the AAVE chart beneath, the double high sample is nicely noticed within the two situations of a worth surge to across the $335 worth area, adopted by decisive pullbacks in July and lately this August. Notably, AAVE has now slipped beneath the important thing help area between $300-$310, turning traders’ consideration to deeper flooring targets.
Based mostly on Martinez’s evaluation, the pivotal stage to watch is $278–$280, which represents the neckline of the M-pattern. A decisive break and shut beneath this stage would validate the bearish projection and expose AAVE to additional draw back. The market professional tasks that, ought to this neckline fail, the token may spiral towards $230, a stage not seen since early summer time.
On the flip aspect, invalidation of the bearish thesis requires AAVE to carry above the $278-$280, earlier than launching a rebound to reclaim the $335 resistance zone. Such a transfer may reestablish bullish momentum, setting the stage for a possible check of the $370 area.
AAVE Surpasses $3 Trillion In DeFi Deposits
In different developments, the Aave protocol has now recorded over $3 trillion in deposits since its launch in December 2020. In accordance with information from DefiLlama, the distinguished lending protocol presently holds $37.15 billion in whole worth locked (TVL) with main host chains together with Ethereum, Arbitrum, Base, and so on.
In the meantime, the Aave token trades at $296 after a slight 0.71% loss within the final 24 hours. Nevertheless, the DeFi token is down by 7.55% on its month-to-month chart, amid widespread crypto market corrections. However, a year-on-year revenue of 168.77% helps its place as a top-performing token within the current market cycle.
With a possible altseason on the horizon, Aave additionally stays one asset on traders’ alert, being a part of the most important 40 cryptocurrencies based mostly on crypto market cap.
Featured picture from aave.com, chart from Tradingview