Aave price faces 20% drop risk as bearish RSI divergence emerges despite steady DeFi deposits

BitcoinWorld Aave price faces 20% drop risk as bearish RSI divergence emerges despite steady DeFi deposits Aave’s token price is at risk of a 20% decline as a bearish RSI divergence signals weakening momentum, even as total value locked (TVL) in its DeFi protocol remains stable.

As of March 19, 2025, AAVE is trading near $85, with technical indicators suggesting a potential drop toward $68 if key support levels break.

Understanding the bearish RSI divergence The bearish RSI divergence occurs when price makes a higher high, but the Relative Strength Index (RSI) makes a lower high, indicating that bullish momentum is fading.

For AAVE, this pattern has emerged on the daily chart, raising concerns among technical analysts about a possible trend reversal. The RSI is currently around 55, down from overbought levels above 70 earlier this month, while the price has remained relatively flat.