The cryptocurrency market experienced a significant correction last week, losing $190 billion in value and bringing the global market capitalization down to $2.07 trillion. Amid this volatility, certain cryptocurrencies stood out due to their notable price action and investor sentiment. Here’s a closer look at Avalanche (AVAX), Polygon (MATIC), and Aave (AAVE)—three top cryptocurrencies to keep an eye on this week.
AVAX Records Six Consecutive Losses
Avalanche (AVAX) saw a sharp decline last week, dropping 15.8% to close at $22.81. The asset faced relentless bearish pressure, with six out of seven trading days ending in losses. Despite the downtrend, there are some signs of potential stabilization:
- RSI-Based Moving Average: A slight uptick suggests weakening bearish momentum.
- Declining Volume: Gradually decreasing trading volume hints at possible exhaustion in the downtrend.
Key Levels to Watch:
- Support: The recent low near $22 could act as a critical support zone.
- Resistance: A break above $24 may signal a shift in market sentiment.
👉 Stay updated on AVAX price movements
The broader cryptocurrency market’s performance will heavily influence AVAX’s next moves. Traders should monitor market-wide trends for cues on whether AVAX will stabilize or continue its downward trajectory.
MATIC Loses 26% in a Bearish Week
Polygon (MATIC) endured one of the steepest declines among major cryptocurrencies last week, plummeting 26.5% to close at $0.4196. The drop was fueled by a bearish engulfing candlestick on August 25, signaling strong seller dominance.
Technical Observations:
- Bollinger Bands: MATIC fell below the upper and middle bands, indicating a clear downtrend.
- Potential Support: The lower Bollinger Band (~$0.3510) may serve as a crucial support level if selling continues.
Possible Recovery Scenarios:
- Break Above $0.4568 (middle band) could suggest a reversal.
- Further Downturn Below $0.3510 might lead to deeper losses.
Despite the price drop, Polygon’s network activity surged, indicating underlying strength. Investors should watch whether price follows fundamentals in the coming days.
AAVE Shows Resilience Amid Market Turmoil
Aave (AAVE) outperformed many altcoins last week, registering a milder 5.37% decline to close at $129.71. Unlike AVAX and MATIC, AAVE avoided setting new lows and even posted two days of gains, demonstrating relative strength.
Key Technical Indicators:
- EMA Support: AAVE remains above both the 50-day EMA ($112.50)** and **200-day EMA ($101), reinforcing a bullish medium-term outlook.
- Resistance at $130: Breaking above this level could attract renewed buying interest.
Critical Levels to Monitor:
- Downside Risk: A drop below $112.50 (50-day EMA) may indicate weakening sentiment.
- Upside Potential: Holding above $130 could signal accumulation.
👉 Explore AAVE’s lending market dynamics
FAQ: Frequently Asked Questions
1. Why did AVAX drop so sharply last week?
AVAX’s decline was part of a broader market correction. However, its six-day losing streak suggests strong bearish pressure, potentially due to profit-taking or weakening short-term sentiment.
2. Is MATIC oversold?
Not yet. Despite its 26% drop, MATIC remains above the lower Bollinger Band, meaning it hasn’t entered oversold territory. A further decline toward $0.35 may present a buying opportunity for traders.
3. What makes AAVE more resilient than other altcoins?
AAVE benefits from strong fundamentals, including high lending protocol activity and institutional interest. Its ability to hold key EMAs suggests long-term confidence among holders.
4. Should I buy AVAX, MATIC, or AAVE now?
Market conditions remain volatile. Traders should watch for:
- AVAX: Stability above $22
- MATIC: Recovery above $0.4568
- AAVE: Holding $112.50 as support
Final Thoughts
While AVAX, MATIC, and AAVE faced challenges last week, each presents unique opportunities and risks. Traders should watch key technical levels, broader market trends, and fundamental developments to gauge their next moves.
Stay informed, manage risk wisely, and consider these cryptocurrencies in the context of your overall strategy.