AAVE Succumbed to the Bears With a 9% Dip As Bitcoin Falls to $19K

Key Insights:

• AAVE hit with the bearishness fell by 12.09%.
• Bitcoin regressed to $19.5k barely a week after escaping it.
• The crypto market lost close to $100 billion in the span of 3 days.

Despite signals of an active uptrend on the charts, most of the cryptocurrencies seemed to have declined yesterday. Although this could be a bounce-off for the market as price indicators are flashing a gradual incline.

AAVE Takes the Lead, but Not in the Wrong Way

Despite being one of the top DeFi applications in the world, the lending protocol has been underperforming on the charts. Ever since the crash of June, AAVE has been unable to recover completely, but steadily it has risen above its lows of $50 in the last month. 

However, in the last 24 hours, the altcoin plunged by 12.09%, pushing AAVE farther away from closing above $100. 

This is despite the fact that the Parabolic SAR is clearly indicating an active uptrend that began just this week.

Usually, when the price declines in an uptrend, it is either due to the selling pressure generated by external factors or because of the bearishness of the rest of the market. 

But in this instance, the price fall is mostly a bounce-off for AAVE since not just the SAR but the Relative Strength Index (RSI) is also flashing bullish cues.

The indicator reached the bullish zone after three months of lingering below the neutral line, and after the recent price fall, it slipped again but kept at the neutral line. 

Thus, AAVE could continue to rise, provided the broader market does not extend any bearishness onto the altcoin.

Bitcoin Needs Support

It is unusual to see the king coin stuck in the same level even when the rest of the market exhibits volatility of such intensity, but given the state of the worldwide economy, it makes sense why BTC is stuck in the same zone as well.

Reaching almost a month, BTC has been lingering at around $19k to $20k, with the consolidation not coming to an end. This behavior from BTC has also affected the altcoin king, and ETH has been stuck around $1k.

At the moment, BTC is not showing any guaranteed sign of recovery either since the king coin has not been able to convert a critical level into support. The 50-day Simple Moving Average (SMA) has been acting as resistance for more than three months now, with the 100-day SMA moving even farther away.

Additionally, the MACD is evincing the occurrence of a bearish crossover with the bearishness taking charge, as visible by the increasing red candles.

Put simply, BTC is going to remain consolidated around these zones for a lot longer than expected.