💥💥💥 $AAVE Price Outlook: #BEARISH📉 Structure and Short-Term Volatility Despite DeFi Strength
AAVE's Market Trends and Future Prospects
Bearish Market Structure: AAVE has been in a bearish trend, recently dropping to the 78.6% Fibonacci retracement level at $78.71 before a brief recovery to $106. The failure to establish a new high confirms a bearish outlook. The daily RSI hovers around the neutral 50, lacking strong bullish momentum, while the OBV has been rising since August 5th. However, the CMF dropped to -0.2, indicating capital outflows.
Volatility and Distribution: AAVE shows significant volatility and distribution patterns. The MVRV ratio fell from nearly 30% to -2%, signaling profit-taking by short-term holders as the price dipped below $100. The decrease in mean coin age (MCA) supports this distribution phase, suggesting sellers outweigh buyers.
Liquidity Targets and Market Sentiment: Liquidity targets are identified at $108.5 and $118-$120, with potential pullbacks expected. Although AAVE initially outperformed Bitcoin, this advantage diminished quickly. Despite these challenges, AAVE's protocol demonstrated resilience, generating $6 million in revenue from decentralized liquidations, highlighting its strength in the DeFi sector.
Conclusion: AAVE faces a bearish market and neutral momentum. Investors should watch for accumulation signals and liquidity targets to better gauge future price movements, as AAVE's performance during network stress suggests potential long-term strength in DeFi.
Source - en.coinotag.com
