• AAVE ($184.89) has declined over the past month by 20.52%.
• An analyst predicted a potential decline to $203 amidst increased selling.

Since hitting $361 a week ago, Aave [AAVE] has struggled to maintain an upward momentum. Over this period, the altcoin has dropped to hit a low of $272.

At the time of writing, AAVE was trading at $282, marking a 2.61% decline on daily charts. The altcoin has also declined on weekly and monthly charts, dropping by 17.17% and 20.52% respectively.

The recent market conditions have left analysts pessimistic, predicting a further dip. Popular crypto market analyst Ali Martinez has suggested a potential dip to $203, citing a sell signal.

Market sentiment

In his analysis, Martinez observed that the TD Sequential Indicator has signaled a sell on the AAVE on weekly charts.

According to him, this signal is pointing to a potential dip to $264 and even $203 to the lower downside. When the TD sequential indicates sell, it suggests that the upward trend is exhausted and a downward decline is a possibility.

Therefore, if sellers enter the market, we could see a downward pressure strengthen resulting in further decline.

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