KEY TAKEAWAYS
Aave introduced the Aave app on the official App Store.
The AAVE price trades inside the $170 support area.
Can AAVE bounce inside support and begin to rally?
On Nov. 17, Aave officially introduced its application on the App Store. The Aave App is marketed as a more innovative way to save, giving up to 9.00% Annual Percentage Yield (APY) on your savings.
The AAVE price trades inside the $170 horizontal support area, which is the final one before the cycle low.
Can the positive news trigger an AAVE price bounce, or is another breakdown inevitable? Let’s find out.
AAVE Price Analysis
The daily AAVE price action has shown a decrease within a descending parallel channel since its cycle high of $386 in August.
On Oct. 13, the AAVE price fell to a low of $79.51 before bouncing and moving back inside the channel.
Despite the severity of the decline, the long lower wick did not cause a breakdown from either the channel or the $170 horizontal support area.
While AAVE prevented a breakdown, it did not break out of the channel. Instead, it continued to decrease inside it, falling back to the $170 horizontal support area today.
The $170 area is critical since it is the final one before the April lows of $125. Therefore, if AAVE fails to bounce here, it will likely break down and hit the channel’s support trendline at $125.
Momentum indicators suggest this will happen. The Relative Strength Index (RSI) and the Moving Average Convergence/Divergence (MACD) broke down from their bullish divergence trend lines.
Therefore, despite the positive news regarding the App Store release, the AAVE prediction remains bearish, and the price is likely to break down from the $170 horizontal support area.
Can AAVE Bounce?
While the daily time frame technical analysis is bearish, the short-term two-hour one suggests some AAVE relief could follow.
The price of AAVE trades inside a descending wedge, which is considered a bullish pattern.
Additionally, the RSI and MACD have both generated bullish divergences, a sign that often leads to bullish trend reversals.
With the AAVE price now near the wedge’s apex, a significant short-term price move is likely soon.
If a breakout occurs, AAVE could climb to resistance at $190–$198, but this would be a short-term move within the broader downtrend.
Afterward, the downward movement outlined in the daily time frame chart could transpire.
Short-Term Relief Before Breakdown
AAVE is positioned at a crucial support level, and despite the App Store launch, the long-term trend remains bearish.
A short-term bounce toward $190–$198 is possible, thanks to the descending wedge and bullish divergences; however, the relief may be temporary.
