Current scenario:
AAVE is valued at $370 after having a drop of 14% from the value of $420. On 10th February AAVE reached $580, but after that it has failed to cross $500. AAVE is moving downside after having rejection at $498 on 20th February.
BEARISH HEAD AND SHOULDER:
The above chart shows a strong possibility of bearish movement in AAVE due to the formation of the Head and Shoulder.
At the beginning of March, after getting strong support at a price of $300, AAVE moved upward and fell down to $350 from $400, then went back up to $460, but again dropped back to $350. Again while moving up it was rejected at $420. However, this has created a head and shoulder in AAVE, indicating a further downwards movement in AAVE. The value of AAVE can further go down up to $300-$320 before it can gain any Support.
News on AAVE
AAVE Protocol launched a new AMM for Liquidity providers of Uniswap and Balancer. This may change the market sentiment on AAVE. The addition of liquidity due to this project may give a price pump in AAVE.
You can learn more about this from the following link:
AAVE AMM Market Allowing Uniswap and Balancer LP Tokens as Collateral
Conclusion:
Possibility of bearish movement in AAVE due to Head and shoulder. But It can hold this price due to the launch of the new AMM.
