AAVE breaks $100 support; traders watch $92 as bearish momentum builds
AAVE fell about 7.7% and broke the $100 support level, dropping to a three-week low near $96 and trading around $97. The price slid below the 9- and 21-day moving averages, signaling strong downside pressure.
On-chain and flow data supported the bearish move. CryptoQuant showed 79k AAVE tokens flowed into exchanges versus 74k flowing out, keeping Netflow positive for a sixth day. The Exchange Supply Ratio rose to a monthly high of 0.137, typically increasing immediate sell pressure.
Momentum indicators also weakened. The Bulls vs. Bears indicator turned negative after being positive for over a month, implying sellers displaced buyers. The RSI dropped to 34, approaching oversold territory, but indicating sellers still controlled the market.
Trading outlook: if bearish pressure continues and buyers do not reclaim the $100 level, AAVE may test $92 before any rebound attempt. A more meaningful recovery likely requires bulls to flip $100 and reclaim the 9- and 21-day MAs near $107 and $110; otherwise AAVE risks an extended bearish streak and staying below $100.
(Article by AMBCrypto; content is informational, not investment advice.)
Bearish
The article frames AAVE as entering a bearish phase after breaking the $100 support. This is reinforced by multiple confirming signals: price slipping below the 9- and 21-day moving averages, the Bulls vs. Bears metric turning negative, exchange inflows exceeding outflows (Netflow positive but with higher exchange supply), and RSI falling to 34.
Historically, when an altcoin loses a key psychological level and simultaneously shifts below short-term MAs, traders often reduce long exposure and wait for confirmation from higher levels—typically leading to a gravity move toward the next support (here, $92). The increase in Exchange Supply Ratio often precedes further downside because more tokens are available for immediate sale.
Short-term implication: elevated sell pressure raises the probability of a retest/flush below $100 and movement toward $92. Long-term implication depends on whether AAVE can reclaim $100 and then the 9/21-day MAs near $107–$110; failure would keep sentiment fragile and may cause prolonged range-to-downtrend behavior.
Overall, the confluence of technical break + flow data makes the setup more consistently bearish than neutral or bullish at this moment.