The Aave (AAVE) market is now exhibiting indicators of exhaustion after a formidable value rally earlier in August. Following a powerful rejection on the $335 value area, the DeFi token is exhibiting vital hawkish potential as mirrored by a 12.03% decline up to now 48 hours. Interestingly, famend market analyst Ali Martinez shares some potential draw back targets derived from an rising bearish sample.
AAVE Faces Double-Top Risk: $230 Target Looms If Key Supports Fail
In an X put up on August 16, Martinez offers 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 the same resistance zone however fails to determine a breakout, adopted by a breakdown beneath the neckline help to type a “M” form.
Looking on the AAVE chart under, the double high sample is properly noticed within the two cases of a value surge to across the $335 value area, adopted by decisive pullbacks in July and just lately this August. Notably, AAVE has now slipped under the important thing help area between $300-$310, turning traders’ consideration to deeper ground targets.
Based on Martinez’s evaluation, the pivotal stage to observe is $278–$280, which represents the neckline of the M-pattern. A decisive break and shut under this stage would validate the bearish projection and expose AAVE to additional draw back. The market skilled tasks that, ought to this neckline fail, the token might spiral towards $230, a stage not seen since early summer season.
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 might reestablish bullish momentum, setting the stage for a possible take a look at 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. According to knowledge from DefiLlama, the distinguished lending protocol at present holds $37.15 billion in whole worth locked (TVL) with main host chains together with Ethereum, Arbitrum, Base, and many others.
Meanwhile, the Aave token trades at $296 after a slight 0.71% loss within the final 24 hours. However, the DeFi token is down by 7.55% on its month-to-month chart, amid widespread crypto market corrections. Nevertheless, a year-on-year revenue of 168.77% helps its place as a top-performing token within the current market cycle.
With a potential altseason on the horizon, Aave additionally stays one asset on traders’ alert, being a part of the biggest 40 cryptocurrencies primarily based on crypto market cap.
Featured picture from aave.com, chart from Tradingview
