The AAVE token is stuck near $83, and the bears aren't letting go. Despite technical indicators flashing oversold conditions, selling pressure continues to cap any meaningful recovery, leaving traders eyeing a potential slide toward the $78 support zone.
Bears Keep the Pressure On
AAVE has been trending lower, and the momentum remains firmly in the hands of sellers. The current price of $83 marks a level that has been tested repeatedly in recent sessions, but buyers haven't been able to mount a sustained push higher. Each attempt at a rally has been met with fresh selling, reinforcing the bearish grip.
Oversold readings on the relative strength index usually hint that a bounce is due. But in this case, those signals aren't reversing the trend. The market is treating them as a reason to sell into strength rather than a cue to go long. That's a classic sign of a downtrend that still has room to run.
Oversold Territory Offers Little Relief
The oversold condition alone doesn't guarantee a turnaround. In a strong bear trend, prices can stay oversold for extended periods while continuing to fall. AAVE's price action reflects that reality — the token hasn't been able to hold above $85 for more than a few hours, and the bears are defending every attempt at a recovery.
Traders are watching to see if the selling exhausts itself before the $78 level is reached. That number is the next major support, and a break below it would open the door to even lower prices. For now, the path of least resistance remains downward.
Key Levels to Watch
On the downside, $78 is the line in the sand. If AAVE drops to that level, it will test whether buyers step in or whether the sell-off accelerates. A breakdown below $78 could trigger stop-losses and margin calls, adding fuel to the fire.
On the upside, $88 stands as the immediate resistance. A rally back to that zone would require a shift in momentum — either a catalyst or a significant flush of sellers. Without that, the bearish setup stays intact.
The question now is simple: will AAVE slide to $78 or find enough buying pressure to bounce toward $88? The oversold reading suggests a bounce is possible, but the bears have controlled the story so far.
