Cryptocurrency AAVE has entered a bearish phase following its local peak of $73.40 on October 1, 2023. The pattern of two lower lows and lower highs indicates a loss of bullish momentum for the digital asset. The coin's recent performance suggests possible shorts at the retest of pullback resistance at $64.50, which could trigger a 17% decline to the September 11 swing low of $51.39.
This downturn for AAVE counters its previous rally of 40% which occurred from September 11 to October 1. If the cryptocurrency fails to maintain the crucial support level at $57.40 after an anticipated 8% drop, further declines to $54.10 and eventually to $51.39 are likely.
However, this bearish outlook would be invalidated if there is a daily close above the October 16 high of $67.17. Such an event could potentially reignite an uptrend towards the October 6 high of $69.77, thus reversing the current downward trend for AAVE.
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