• The DeFi faces an attack by the Mango Market exploiter, Avraham Eisenberg.
• More and more holders are jumping ship to join the Flasko presale. 
• The price plummets by more than 30% in the last week. 

The assault that recently occurred with AAVE sent the holders into an inevitable panic and the platform into deep debt. The finance protocol suffers from $1.6 million in debt due to a liquidated $87 million short bet on CRV. Llama and Gauntlet proposed to cover the amount in Bad debt as the amount is small enough to be covered by the insolvency fund and the AAVE treasury. This squeeze was amplified by the fact that holders are way more excited about the Flasko (FLSK) presale than they are sad about the attack. 

The Monoscopic POV

The price is forming a falling wedge pattern with a target range of $50. The volume was hiked on the day of the hack, dropped by many folds, and still diminishes. It may witness a further drop in the price as the breakdown approaches and sellers become active. The 20-EMA drops sharply, with the higher EMAs floating aligned way above the current price.

The CMF indicator floats below the 0-level and moves parallel to it. It may escalate upwards as the price moves to and fro, forming a wedge. The MACD indicator converges with redeeming histograms. It may tangle as it flashes the neutral market for the currency. The RSI indicator lays flat in the 30-40 range. The pattern is formed and may escalate slightly before the breakdown.

The microscopic view

The CMF indicator floats closer to the 30 range with a slightly rising slope. It may match its momentum with the ongoing formation till the break approaches. The RSI indicator collapses with the 50-mark range and may drop down below its current position. The MACD line coincides with the signal line while recording the purchase fringe. The current market is neutral in the sense that sellers are as active as buyers and are maintaining the equilibrium. 

Conclusion

The current market situation of AAVE doesn’t look good to the users. Analysts are pessimistic as they claim Aave would lose momentum in the erratic crypto space. And with the stats showing the price of Aave plummeted nearly 30% over 30 days, we can’t oppose the notion. 

Technical levels

Support levels: $50 and $43

Resistance levels: $80 and $86

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational ideas only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.