AAVE, the native token of the Aave decentralized lending protocol, has fallen below every major moving average. The breakdown marks a sharp technical deterioration, with chart patterns now pointing to a further slide into the $75 to $78 range over the next one to two weeks.
Below all major moving averages
The token's price slipped through its 50-day, 100-day, and 200-day moving averages in quick succession. Those levels are typically watched as support zones, and losing them signals that sellers have taken firm control. The move happened without a clear headline catalyst, suggesting the sell-off is driven by broader market pressure and waning demand for DeFi tokens.
Selling pressure persists
Technical indicators show no letup in selling momentum. Even as AAVE approaches oversold territory on the relative strength index, the downward pressure hasn't eased. Oversold readings can sometimes trigger a bounce, but the current setup — falling below key averages with continued volume — points to more downside before any stabilization.
Price target: $75 to $78
Based on the breakdown patterns, analysts project AAVE will drop to the $75 to $78 range within 7 to 14 days. That's roughly 15-20% below current levels. The target comes from measured move calculations derived from the height of the prior trading range. If the token fails to hold the $75 support, the next floor around $65 could be tested.
What's ahead for AAVE
The immediate question is whether the approaching oversold condition will produce even a temporary bounce. If buying interest doesn't pick up, the slide toward the target range is likely to continue. Traders are watching for a clear reversal pattern — a daily close back above the 200-day moving average would be the first sign of a potential turnaround. For now, the path of least resistance is lower.
