$AAVE AAVE Head and Shoulders โ ๏ธ๐ | Bearish Reversal Brewing ๐ป๐ฅ
๐ฎ AAVE is showing a classic head and shoulders pattern on the charts ๐ง ๐ โ a textbook signal of a potential trend reversal. After an extended uptrend, the token is struggling to maintain momentum at strong resistance ๐๐๏ธ.
๐ Technicals confirm caution: the RSI is flattening, showing waning buying pressure ๐ฏ๐. The MACD has started a bearish crossover ๐๐ป, hinting at downward momentum gaining strength. Sellers are pressuring price near the neckline, and a break below could accelerate the decline ๐จ๐ฅ.
๐ฅ Volume spikes during the formation are tapering off ๐๐ฃ, signaling buy volume declining while sell pressure increases ๐ฅ๐ผ. Each rally is being absorbed by sellers, leaving little room for bulls to maneuver.
๐ On-chain data paints a worrying picture: whale distribution is active ๐ณ๐ฆ, and exchange balances are rising ๐ฆโฌ๏ธ. This indicates large holders are preparing to offload, while wallet growth slows ๐๐ โ a red flag for long-term accumulation.
๐ฌ Social sentiment is cooling โ๏ธ๐ข. Fewer positive mentions and reduced hype indicate the communityโs enthusiasm is waning. Without fresh catalysts, the market uncertainty remains high ๐ณ๏ธโ ๏ธ.
โ๏ธ Traders should exercise caution โ a confirmed break below the neckline could lead to sharper losses. Manage risk carefully, and remember that patience pays off โณ๐ฐ when signals like this appear.
If the head and shoulders pattern completes, AAVE may face further downside, testing deeper support zones before any potential recovery ๐ณ๏ธ๐.
โ ๏ธ Not financial advice โ always DYOR ๐ง ๐