• AAVE trades at $265 with a 2.87% gain, but an 11.89% drop in volume to $302M signals weak buyer strength.
• A weekly loss of 4.44% indicates a persistent downward trend, and the price experiences difficulty surpassing resistance levels.
• RSI at 43.45 and bearish MACD confirm weak momentum; falling volume adds to downside risk.

AAVE is currently trading at $265, marking a 2.87% increase within the last 24 hours. The volume of trading simultaneously experienced a significant decline, with a drop of 11.89%. The area currently is at $302 million. Despite the decrease in activity, the price increase suggests a lack of conviction in the markets. 

Source: CoinMarketCap

Over the last week, the AAVE coin has decreased by 4.44%. The token is being pressured towards the week. Its short-term profits are insufficient to turn the wider downtrend. The price action is narrow and has difficulty breaching resistance levels. 

AAVE Tests Crucial Level With $300 or $180 in Sight

Crypto analyst CryptoPulse highlighted that AAVE is trading slightly above a significant support line, and that could define its short-term move. If the price is able to support this zone, further upside could be seen. The analyst identified the 3 major resistances at levels of $300, $350, and $420, which concurred with the 0.5, 0.618, and 0.786 Fibonacci retracements. 

However, should AAVE not sustain this backing, then a more severe correction can be expected. In that event, the price can fall back to the lower support level of between $180 and $200. This is an area that has traditionally offered purchasing interest in down market conditions. As the volume faltered and the indicators turned bearish, a breakdown was still viable. 

Source: X

Also Read: BNB Eyes $860 Amid Market Recovery and Surge in On-Chain Metrics

AAVE RSI Neutral, MACD Shows Bearish Momentum

The RSI stands at 43.45. Its signal line is at 42.03. AAVE has both values, indicating that it is neither overbought nor oversold. This aligns with the opinion of market indecisiveness. It would need a move higher than 50 to indicate actual buying power.

The MACD indicates a bearish pattern. The MACD line stands at -9.29 and the signal line at -6.32. The histogram value is -2.97. These figures affirm negative momentum. The difference between the signal and MACD lines still indicates downward pressure. 

Source: TradingView

Open Interest Increases, Volume Declines

According to CoinGlass data, the volume fell by 18.43%, to $500.71 million. Meanwhile, open interest increased 4.25% to $559.60 million. This increase implies that traders are initiating new positions. The volume decline, however, indicates a lack of interest in the crypto market.

The OI-weighted funding rate is 0.0093%. This signals a little bullish inclination in the derivatives market. However, it is not sufficient to prove a trend reversal. Despite the rising open interest, traders remain cautious.

Source: CoinGlass

AAVE is at an important level. The technical indicators are poor, and the volume is declining. The token can experience further decline without renewed purchase. The upcoming sessions will be decisive for its course.

Also Read: Ripple Fires Back at SEC Overreach, Pushes Congress for Crypto Clarity